U.S. Foodservice said yesterday that it has acquired St. Louis-based Allen Foods Inc. in an effort to expand its reach in the Midwest.
"Allen Foods has been one of the most respected names in the food service business," Robert Gillison, vice president and treasurer of Columbia-based U.S. Foodservice, said yesterday.
"We had an opportunity to do a transaction with them, and really beef up our presence in what is one of the best and largest markets in the country."
Gillison declined to disclose financial terms of the transaction. In its most recent fiscal year, Allen produced food service net sales of about $245 million.
The purchase is consistent with U.S. Foodservice's strategy to grow both organically and through acquisition, Gillison said.
"We're looking to buy the best local independents in markets where U.S. Foodservice doesn't have a presence or where our presence is weak," Gillison said.
This acquisition comes on the heels of the September announcement that U.S. Foodservice would buy Lady Baltimore Foods Inc. of Kansas City, Kan.
Late last year, U.S. Foodservice and its parent company, Dutch conglomerate Royal Ahold NV, completed the $2.2 billion takeover of Alliant Foodservice Inc.
Stanley Allen, president of Allen Foods, is to continue as president of the St. Louis division of U.S. Foodservice. In a statement, he said: "We are excited by the opportunity to join forces with U.S. Foodservice. We will enhance U.S. Foodservice's local expertise and presence and use the strengths of both companies to better serve our customers throughout Missouri and southern Illinois."
No layoffs are expected at Allen Foods, Gillison said. Eventually, growth could bring additional hires, he said.
Allen Foods Inc. distributes about 11,000 items to 5,400 customers throughout an area extending from southern Illinois and St. Louis to Kansas City, Mo.
Founded in 1901, Allen was the largest independent broad-line food service distributor serving that region.
U.S. Foodservice's acquisition did not include Halben Food Manufacturing Co. Inc., a subsidiary of Allen Foods that was retained by Allen's shareholders.
With about 100 distribution centers nationwide, U.S. Foodservice supports more than 300,000 customers across the country.