Trade Resources Company News US Foods Plans to Raise $100m Through IPO

US Foods Plans to Raise $100m Through IPO

US Foods Holding Corp plans to go for initial public offering of its shares to raise $100m, a move that comes after Sysco Corp failed to acquire it.

In its filing with the US Securities and Exchange Commission, US Foods did not state the particular financial terms of the IPO, reported The Wall Street Journal.

The firm plans to use the proceeds from the IPO to repay debt and as well as use it for other purposes.

Following the IPO, its largest stakeholders - Clayton Dubilier & Rice LLC and KKR & Co, would have control of the company.

The two stake holders have an interest of roughly 49.3%.

US Foods claimed in its regulatory filing that it is the second-largest food service distributor in the US, holding a share of 9% in the market.

It posted net sales of $23bn for the 12-month period ended 26 September.

Competitor Sysco had to drop its plans to acquire US food after striving for it for more than year-and-a-half as a federal judge ruled against the proposed merger due to competition concerns.

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