Trade Resources Company News US Foods to Buy Italian Specialty Distributor Jeraci Foods

US Foods to Buy Italian Specialty Distributor Jeraci Foods

US Foods has entered into an agreement to acquire specialty foods distributor Jeraci Foods to expand its reach in the Italian independent restaurant and pizzeria sectors.

However, the terms of the transaction were not disclosed.

Based in Elmsford, New York, Jeraci Foods serves the metro New York region with a range of authentic Italian and other imported and domestic food products.

US Foods area president Chuck Gannon said: “As a family owned business Jeraci Foods has built a strong reputation for great customer service and high quality food.

“At US Foods, we pride ourselves on those same characteristics and look forward to bringing an even more robust product offering to Jeraci customers.”

The acquisition deal is likely to be closed on 7 October.

Its existing location in Elmsford though will remain open till 2016 end to ensure a smooth transition. Thereafter, the business of Jeraci Foods will be moved to the US Foods location in the New Jersey located Perth Amboy.

Jeraci Foods generates net sales of over $26m annually.

Its acquirer, US Foods, one of the largest foodservice distributors, generates about $23bn sales revenue annually.

Headquartered in Rosemont, Illinois, US Foods with a work force of about 25,000 employees operates from more than 60 locations across the US.

In May this year, US Foods raised $1.02bn by pricing 44.4 million shares at $23 in its initial public offering (IPO). The company planned to use the IPO proceeds to cut down its debt which was approximately $5bn.

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