"On Nov. 29, 2005, we announced that expansion and acquisition were key components of our long-term growth strategy for U.S. Foodservice," said Lawrence Benjamin, president of the second largest U.S. distributorship. "We are pleased to announce today our first acquisition as part of this new strategy and we also have a number of facility expansions planned, underway and recently completed. Based on continued improvements in our financial and industry performance, we are increasing our investment in growth."
Savage Foods, based in Chesterfield, MO, is a family-owned meat processor, founded in 1955, that distributes to independent restaurants, hospitality and lodging customers and other foodservice businesses.
"We are excited to be joining forces with U.S. Foodservice and are confident that this transaction will enhance our ability to service our current customers and create new opportunities for growth," said Paul Savage, Jr., who will remain president of the company.
Savage Foods operates from a state-of-the-art meat processing facility newly constructed in 2004. Savage Foods will become a part of U.S. Foodservice's Stock Yards specialty meat business. The acquisition is subject to standard conditions to closing and terms are not being disclosed.
In addition to the planned acquisition of Savage Foods, U.S. Foodservice facility expansions have added approximately 750,000 sq. ft. of capacity in the past year, with an additional 350,000 sq. ft. planned to be added in the next 18 months. These expansions involve distribution centers in: Columbia, SC; Raleigh, NC; Dallas; Las Vegas; Tampa, FL; Cleveland, Ohio; Manassas, VA; Greensburg, PA; Salem, MO; La Mirada, CA; Ft. Mill, SC; Bismarck, ND; and Corona, CA.
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