US Foods makes play further into the Midwest with new acquisition
Major food distributor US Foods has announced acquisition plans that will expand the company’s presence within the Midwest United States.
The Illinois-based company plans to purchase broadline distributors The Thompson Company, Braunger Foods and Variety Foods, which are all owned and operated by TOBA Inc. After entering the food distribution realm in 1995 with its purchase of The Thompson Company in Grand Island, Nebraska, TOBA Inc. continued its expansion into the sector with its acquisition of Sioux City, Iowa’s Braunger Foods in 2002 and Sioux Falls, South Dakota’s Variety Foods in 2007.
With a collective annual sales volume of more than USD 130 million (EUR 112 million), the three companies conduct most of their business among restaurants, schools, grocery stores and convenience stores scattered across seven states in the Midwest.
“This acquisition allows us to expand further into the Midwest and positions us even closer to our customers,” said Russell Scott, Midwest president for US Foods, in a prepared statement acquired by Food Newsfeed. “We look forward to building on the expertise of the strong employee base at The Thompson Company, Braunger Foods and Variety Foods and welcoming them to US Foods.”
The sale of the companies is expected to close by late July, with the terms of the deal kept undisclosed. The approximately 250 team members working for The Thompson Company, Braunger Foods and Variety Foods are expected to be welcomed as new employees of US Foods once the deal is finalized.