Queensgate Foodservice Joins Chef's Warehouse
RIDGEFIELD, Conn., Jan. 2, 2013 (GLOBE NEWSWIRE) -- The Chefs' Warehouse, Inc. (Nasdaq:CHEF), a premier distributor of specialty food products in the United States, today announced that it has acquired substantially all the assets of Queensgate Foodservice, located in Cincinnati, OH.Founded in 1999, Queensgate is a distributor stocking more than 8,000 items, including a full line of produce, fresh meats and poultry, dairy, dry grocery, and frozen foods. They currently serve some of the finest restaurants, caterers, hotels, country clubs, and other operators in Ohio, Kentucky, and Indiana.
"We are thrilled to have Queensgate join the Chefs' Warehouse family," said Chris Pappas, chairman and chief executive officer of The Chefs' Warehouse, Inc. "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. chief executive officer 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 Foodservice is expected to generate approximately $40 million in revenue in 2012. The total purchase price for the business was approximately $22 million at closing (subject to customary post-closing working capital adjustments) and was funded with borrowings under the Company's existing revolving credit facility. The purchase price is also subject to an adjustment of up to $2.4 million based on the achievement of certain earnings targets in 2013 and 2014. The acquired business is expected to contribute to the Company's earnings in the latter half of 2013 once the business is fully integrated. The Company expects to issue financial guidance for the full year 2013 when fourth quarter and fiscal year end 2012 results are reported in early 2013.