US Foods has entered into an agreement to acquire fresh fruit and vegetable processing company Freshway Foods for an undisclosed sum.
Freshway Foods also repacks and distributes fresh fruits and vegetables to customers throughout the eastern part of the US.
Ohio-based Freshway Foods, which was founded in 1988, offers fresh cut produce that includes the cutting, cleaning, chopping and packaging of raw produce to deliver customized products to customers.
The company claims to use farm-to-fork food safety approach to ensure food safety compliance from farmer through to consumption.
US Foods will continue to keep the 100,000ft2 Freshway Foods building operational. It will also absorb Freshway Foods' employees into it.
Freshway Foods owners Phil Gilardi and Frank Gilardi said: "Since we started this business, our success has been built upon our commitment to our associates and our customers and we are looking forward to the next chapter for Freshway Foods as part of a well established and reputable company like US Foods."
The deal is expected to be completed on 10 June 2016.
Illinois-based US Foods is a distributor serving chefs and foodservice operators in the US, catering to independent and multi-unit restaurants, and healthcare, hospitality, government and educational customers, reported themiddlemarket.com.
The development comes after the company announced its intentions to raise $1bn in a planned stock market listing to use to trim its debt.
The company has set the price range of the initial public offer (IPO) between $21 and $24 per share. If all the shares are sold at the high end of the range, the company could raise more than $1.2bn.
