US food distribution sector reshaped through major acquisitions
Several major deals were completed at the end of July, as US Foods continued its expansion into the food distribution market in the US.
The company announced since mid-July about its intention to acquire Thompson Company, Braunger Foods and Variety Foods, which are all owned and operated by TOBA in a move that allows setting a bigger footprint in the Midwest.
"This acquisition allows us to expand further into the Midwest and positions us even closer to our customers. We look forward to building on the expertise of the strong employee base at The Thompson Company, Braunger Foods and Variety Foods and welcoming them to US Foods", explained Russell Scott, Midwest president for US Foods, according to Seafood Source magazine.
At the end of the month, US Foods announced that the number of acquisition is going to be 5, adding Food Services of America and Systems Services of America on its shopping list worth $1,8 billion.
Also, Providence, Rhode Island-based United Natural Foods said it was buying Supervalu in Minneapolis, Minnesota, a food distributor and operator of more than 3,000 grocery stores.
The newly-formed company is expected to grow the reach of sustainable and responsibly-sourced seafood products, in addition to other natural foods. At the same time, UNFI said that it would divest Supervalu’s retail stores over time.
"Combining our leading position in natural and organic foods with Supervalu's presence in fast-turning products makes us the partner of choice for a broader range of customers. Together, we can provide our ‘better for you’ products as well as other high-growth segments, improving customers' competitive advantages in a dynamic marketplace,” said Steve Spinner, chairman and CEO of UNFI, in a statement.
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