The Chefs’ Warehouse Inc (Nasdaq:CHEF) has acquired substantially all the assets of Cincinnati OH-based Queensgate Foodservice.
Founded in 1999, Queensgate is a distributor of produce, fresh meats and poultry, dairy, and frozen foods. It serves restaurants, caterers, hotels, country clubs, and other operators in Ohio, Kentucky, and Indiana.
Chris Pappas, chairman and chief executive officer of The Chefs’ Warehouse, said, “We believe that this acquisition is an exciting opportunity to strengthen our position in the Midwest and offers exciting synergies as we integrate this business with our existing operations.”
“We are thankful for the opportunity to join The Chefs’ Warehouse team,” said Pat O’Callaghan Jr, the CEO of Queensgate. “We are incredibly grateful to our dedicated staff, our loyal customers, and our trusted vendors, who worked together to make Queensgate what it is today. We are very excited to take this business to the next level using the strength and resources available to us as part of the Chefs’ Warehouse family.”
Queensgate is expected to generate about $40 million in revenue in 2012. Total purchase price for the business was around $22 million at closing (subject to customary post-closing working capital adjustments) and was financed with borrowings under the company’s revolving credit facility. The purchase price is also subject to an adjustment of up to $2.4 million based on achievement of certain earnings targets in 2013 and 2014.
The Chefs’ Warehouse carries and distributes more than 16,300 products to more than 10,500 customer locations throughout the United States.
Visit www.chefswarehouse.com for complete details.