The partnership between funds affiliated with KKR and CD&R is structured as equal partners, highlighting the collaborative nature of this major acquisition. Charles A. Banks, Chairman of the Board of Directors of U.S. Foodservice and an operating partner at CD&R, expressed enthusiasm for the future direction of the company. “We look forward to working with U.S. Foodservice’s strong management team to continue to drive operating performance improvements,” Banks stated. He further emphasized the inherent growth potential within the fragmented foodservice sector, citing both organic expansion and strategic acquisitions as key opportunities for U.S. Foodservice under its new ownership.
Michael M. Calbert, a Member of Kohlberg Kravis Roberts & Co. Partners LLP, echoed this positive outlook. “We are pleased to complete the acquisition of U.S. Foodservice,” Calbert remarked. He highlighted the company’s robust current performance and expressed confidence in the value creation that KKR and its partners will bring through their operational expertise. “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,” Calbert added, reinforcing Kohlberg Kravis Roberts & Co. Partners LLP’s commitment to collaborative growth strategies.
U.S. Foodservice stands as a dominant player in the American foodservice market, generating revenues exceeding $19 billion in 2006. Its extensive operational network covers regions where over 90 percent of the U.S. population resides, providing a wide range of food and related products. The company caters to a diverse clientele, including independent restaurants, healthcare and hospitality providers, educational institutions, and prominent multi-unit restaurant chains. This broad market reach positions U.S. Foodservice as a critical infrastructure component within the nation’s food supply chain.
The financial backing for this substantial acquisition was provided by a consortium of leading financial institutions, including Citigroup, Deutsche Bank, Goldman, Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co., and Royal Bank of Scotland. These institutions played a crucial role in facilitating the transaction, demonstrating market confidence in the strategic rationale behind the acquisition by Kohlberg Kravis Roberts & Co. Partners LLP and CD&R.
Citigroup, Deutsche Bank, Morgan Stanley & Co., and Rabobank served as financial advisors to CD&R and Kohlberg Kravis Roberts & Co. Partners LLP throughout the acquisition process. Legal counsel for the buyers was provided by Simpson Thacher & Bartlett LLP, while Debevoise & Plimpton LLP acted as legal counsel in connection with the financing aspects of the deal.
About Kohlberg Kravis Roberts & Co. Partners LLP (KKR)
Kohlberg Kravis Roberts & Co. Partners LLP (KKR) is recognized globally as one of the most established and experienced private equity firms, with a history dating back to its founding in 1976. Specializing in management buyouts, KKR operates from key financial centers around the world, including offices in New York, Menlo Park, London, Paris, Hong Kong, and Tokyo. The firm is known for its long-term investment perspective, emphasizing partnership with management teams to foster future competitiveness and growth within its portfolio companies. To date, Kohlberg Kravis Roberts & Co. Partners LLP has completed over 150 transactions, representing an aggregate value exceeding $279 billion, solidifying its position as a major force in the private equity sector. For more information, please visit www.kkr.com.
About U.S. Foodservice
U.S. Foodservice is a recognized leader within the American foodservice distribution industry, committed to delivering food and related products to a wide array of customers. These include independent restaurants, healthcare and hospitality facilities, educational institutions, and large multi-unit restaurant companies. U.S. Foodservice distinguishes itself through a strong customer-centric approach, an industry-leading dedication to service excellence, and a robust portfolio of both national and private label brands. This combination enables U.S. Foodservice to consistently deliver exceptional value to its diverse customer base.
