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“We look forward to working with U.S. Foodservice's strong management team to continue to drive operating performance improvements,” said Charles A. Banks, Chairman of the Board of Directors of U.S. Foodservice and a CD&R operating partner. “The company's leadership position in the highly fragmented foodservice industry provides attractive organic and acquisition-related growth opportunities.”
Michael M. Calbert, a Member of KKR, stated, “We are pleased to complete the acquisition of U.S. Foodservice. The business is performing exceptionally well and we believe the operational expertise we and our partners will bring will drive the creation of additional value. We look forward to partnering with Bob Aiken and the rest of the management team to pursue U.S. Foodservice’s many attractive growth opportunities.”
U.S Foodservice generated revenues of more than $19 billion in 2006 through operations covering a geographic area in which over 90 percent of the U.S. population resides. The company provides food and related products to independent restaurants, healthcare and hospitality customers, educational institutions and prominent multi-unit restaurant companies.
Financing for the transaction was provided by Citigroup, Deutsche Bank, Goldman, Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. and Royal Bank of Scotland.
Citigroup, Deutsche Bank, Morgan Stanley & Co. and Rabobank acted as financial advisors to CD&R and KKR. Simpson Thacher & Bartlett LLP acted as legal advisor to the buyers and Debevoise & Plimpton LLP acted as legal counsel in connection with the financing.
Kohlberg Kravis Roberts & Co. (KKR) is one of the world’s oldest and most experienced private equity firms specializing in management buyouts. Founded in 1976, it has offices in New York, Menlo Park, London, Paris, Hong Kong and Tokyo. Throughout its history, KKR has brought a long-term investment approach to its portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Since its founding, KKR has completed more than 150 transactions with an aggregate value of over $279 billion. (www.kkr.com)
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. (CD&R) is a leading private equity investment firm that has earned consistent, superior investment returns using an integrated operational and financial approach to building and growing portfolio businesses. CD&R’s portfolio investments have included Alliant Foodservice, sold to Ahold in 2001, and Brakes Foodservice, the U.K.’s market leader with operations in France, as well as Hertz, Culligan International, and VWR International. CD&R recently announced an agreement to acquire ServiceMaster in a transaction valued at $5.5 billion. The firm is based in New York and London. (www.cdr-inc.com)
About U.S. Foodservice
U.S. Foodservice is a recognized leader in the American foodservice industry, delivering food and related products to independent restaurants, healthcare and hospitality customers, educational institutions and prominent multi-unit restaurant companies. U.S. Foodservice's combination of customer focus, industry-leading commitment to service and a powerful portfolio of national and private label brands allows the Company to deliver exceptional value to every customer.
Mark Semer/Ruth Pachman
Kekst and Company
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