Rosemont's US Foods acquires Arizona group for $1.8 billion
US Foods in Rosemont said Monday that it is buying a group of Arizona companies for $1.8 billion in cash.
US Foods is buying five operating companies known as SGA's Food Group of Companies.
Headquartered in Scottsdale, SGA's Food Group has combined 2017 net sales of $3.2 billion and approximately 3,400 employees. SGA's Food Group of Companies operates as five separate entities.
One of the companies has a strong focus on serving independent restaurants, which account for approximately 40 percent of its net sales base.
"This acquisition will significantly increase US Foods' reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company," said Pietro Satriano, US Foods chairman and CEO.
"For the past 46 years, we have had the vision to become a leading national food service company. This is an exciting milestone on our journey and provides more success and growth opportunities for our customers and our Associates," said Slade Stewart, Services Group of America executive vice president and chief operating officer.
US Foods is a food company and a food service distributor, partnering with approximately 250,000 restaurants and food service operators to help their businesses succeed. With 25,000 employees and more than 60 locations, US Foods provides customers with a broad food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods generates approximately $24 billion in annual revenue.
On Monday, US Foods reported net income of $126 million for the second quarter, up from $65 million during the same period last year. Second-quarter sales were flat at $6.1 billion.