Chefs’ Warehouse acquires Chicago-based meat processor and distributor

Chefs’ Warehouse has purchased the assets of meat processor and distributor Allen Brothers and its subsidiaries, in a deal worth approximately $29.9m.

Established in 1893, Allen Brothers supplies premium quality meats to restaurants, hotels, casinos and country clubs as well as to consumers through a direct mail and e-commerce platform.

Chefs’ Warehouse paid $20m in cash with proceeds from its recently completed common stock offering and has agreed for future payouts, based on the performance milestones achieved by Allen over the next four years.

The company expects Allen Brothers to generate annualized net sales in the range of $80m to $85m this year and contribute approximately $0.01 to $0.03 to its consolidated diluted earnings per share in 2014.

Chefs’ Warehouse chairman and CEO Chris Pappas expressed his excitement about the addition of Allen Brothers to the Chefs’ Warehouse family of companies.

"We are also extremely excited about the potential to build upon the e-commerce platform that Allen Brothers has built and begin to offer our high quality Chefs’ Warehouse products direct to the consumer," said Pappas.

"In addition, this combination provides a platform for us to build the Chicago market, which we think has significant long-term opportunities for Chefs’ Warehouse," he added.

Allen Brothers president Todd Hatoff said, "Having a partner like Chefs’ Warehouse will only enhance our opportunities to continue building our brand, as well as provide a terrific future for our employees and customers."

Chefs’ Warehouse distributes food products primarily for chefs who own and/or operate independent restaurants, fine dining establishments, country clubs, hotels, caterers, patisseries, culinary schools and speciality food stores.

The company distributes over 23,200 products to more than 17,500 customer locations throughout the US and Canada.

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Image: Allen Brothers supplies premium quality meats to restaurants, hotels, casinos and country clubs. Photo courtesy of rakratchada torsap at FreeDigitalPhotos.net.