Food Business News - February 23, 2016 - 13

US Foods ﬁles for initial public oﬀering
company said it has identified three plans
of action: increase its share with new and
existing customers, grow its share in center-of-plate and produce, and expand its
private brand program.
"Center-of-plate proteins and produce
categories account for a significant por-

ROSEMONT, ILL. - US Foods Holding
Corp. on Feb. 9 filed for an initial public
offering of about $100 million. The announcement comes less than a year after
the Rosemont-based broadline food service distributor was blocked from a potential merger with Houston-based food
distributor Sysco Corp.
US Foods, which is owned by the private equity firms Clayton, Dubilier & Rice
and Kohlberg Kravis Roberts & Co., sustained a loss of $73 million in fiscal 2014
and had net sales of $23,020 million, according to the prospectus. This compared
with a loss of $57 million in fiscal 2013 and
a loss of $51 million in fiscal 2012, but in
the 39 weeks ended Sept. 26, 2015, the
company posted net income of $177 million on $17,192 million in net sales.
According to the prospectus filed
with the U.S. Securities and Exchange
Commission, US Foods supplies more
than 250,000 customer locations nationwide, including independently owned
single- and multi-unit restaurants, regional restaurant concepts, national
restaurant chains, hospitals, nursing
homes, hotels and motels, country
clubs, government and military organizations, colleges and universities, and
retail locations. The company also provides more than 400,000 fresh, frozen
and dry food stock-keeping units.
The company has more than 4,000
sales associates who manage a network
of 61 distribution facilities and a fleet of
approximately 6,000 trucks.
"This operating model allows us to leverage our nationwide scale and footprint
while executing locally," US Foods said.
US Foods said its growth strategy gives
it an opportunity to outpace the projected
growth of the U.S. food service distribution industry, and the company intends
to do so by increasing its revenue with
its target customers, continuing to drive
greater cost savings and efficiencies, and
making opportunistic acquisitions. To
expand its net sales and profitability the

February 23, 2016

tion of total industry sales," US Foods
noted in the prospectus. "These categories are often provided by a number of
specialty distributors that have deep
category knowledge but lack scale. Our
objective is to be our customer's 'first
choice' in these categories." FBN

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FOODBUSINESS NEWS

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Food Business News - February 23, 2016

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