HF Foods Group Acquires 10 Warehouses for $101 Million
UNITED STATES - There are multiple players in the foodservice space, all vying for a slice of the foodservice pie. As companies seek to expand, acquisitions hit the newswire at a rapid-fire rate. HF Foods Group, a food distributor to Asian restaurants across the Southeast, Pacific, and Mountain West regions of the U.S., has recently purchased 10 warehouses for a total of $101.3 million, bringing its total warehouse count to 24.
“With the closing of this transaction, we have gained control of the warehousing properties on terms that we believe are beneficial to our shareholders,” said Zhou Min Ni, Chairman and Co-CEO of HF Foods. “These are properties in which we’ve already invested to upgrade the freezer and storage facilities, which help us better serve our customers and operate more effectively. By owning them outright, we have reduced our dependence on outside parties, and we will eliminate our entire lease expense, which was up for renewal in the next two to three years and was estimated to increase to $6.5 million. The acquisition of the properties will also improve our EBITDA by approximately $2.8 million in 2020.”
Under the terms of the purchase, Triad Business Journal noted, the distributor acquired a 100 percent stake in nine independent holding companies. These nine companies control the 10 warehouse properties, which in total amount to more than 642,757 square feet. Of that square footage, 223,500 of it is dedicated to cold and freezer storage space.
Where else will we see foodservice acquisitions in the new year? AndNowUKnow will keep you updated.