US Foods to expand presence with acquisition of IWC Food Service
USA – US Foods, a major food service distributor, is set to acquire IWC Food Service, a broadline distributor based in Cookeville, Tennessee.
The acquisition aligns with US Foods’ strategic goals, allowing the company to extend its presence into central Tennessee, an area where it currently lacks a distribution center.
The deal, subject to regulatory approval, is expected to close in the second quarter of 2024, with financial terms undisclosed.
IWC Food Service, with annual revenue exceeding US$200 million, is a key player in the food service distribution sector, serving over 2,700 independent restaurants, which constitute half of its business, along with other customers.
The acquisition will enable US Foods to strengthen its foothold in the competitive market and provide enhanced services to customers in the region.
Dave Flitman, CEO of US Foods, expressed excitement about the acquisition, welcoming the dedicated associates of IWC Food Service to the US Foods team.
Flitman emphasized the strategic growth of US Foods, helping both new and existing customers throughout the region.
The acquisition will not only benefit US Foods but also contribute to the continued success of IWC Food Service and its employees.
Bob Mackie, President of IWC Food Service, acknowledged the honor of joining US Foods and appreciated the continued investment in IWC Food Service by its new parent company.
Mackie highlighted the dedication and inspiration of the associates supporting IWC Food Service’s business daily.
US Foods reported a successful 2023, marked by a record full-year Adjusted EBITDA of US$1.56 billion, driven by strong case growth with independent restaurants, healthcare, and hospitality customers.
The company achieved a 4.5% increase in net sales to US$35.6 billion, with total case volume growing by 4.4%. The acquisition of IWC Food Service aligns with US Foods’ strategy for sustainable market outperformance and growth.
As US Foods moves into 2024, the company aims to maintain its momentum and execute its strategy while prioritizing disciplined capital deployment for long-term value creation.
The solid financial performance in 2023, including strong free cash flow, debt reduction, and strategic investments, positions US Foods for continued success and resilience in various market conditions.
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