- THE MAGAZINE
The Chefs' Warehouse, Inc., a Ridgefield, Conn.-based distributor of specialty food products, acquired substantially all of the assets of Chicago-based Allen Brothers, Inc. and its subsidiaries.
Founded in 1893, Allen Brothers is a processor and distributor of premium quality meats to nearly 400 of the nation's finest restaurants, hotels, casinos and country clubs. In addition, Allen Brothers supplies many of those same high-quality products to over 100,000 consumers through a direct mail and e-commerce platform.
"We are very excited to have Allen Brothers join the Chefs' Warehouse family of companies," says Chris Pappas, chairman and CEO of The Chefs' Warehouse. "Allen Brothers is the gold standard in the meat business and has been for more than 100 years. Their commitment to the highest quality products and outstanding customer service makes this an outstanding partnership and provides us with outstanding new opportunities for growth. 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 Chef's Warehouse products direct to the consumer. 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."
"We are thrilled to join The Chefs' Warehouse team. We believe this is a great opportunity for our dedicated staff, our loyal customers and our trusted vendors, who have all contributed to building Allen Brothers' long history," says Todd Hatoff, president of Allen Brothers. "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."
Allen Brothers is expected to generate approximately $80-$85 million in annualized net sales in 2013. The total purchase price for the business is expected to be approximately $29.9 million (subject to customary working capital adjustments), of which $20 million was paid at closing with cash proceeds from the company's recently completed common stock offering. The remaining $9.9 million represents liabilities assumed by the company and earn-out consideration to be paid upon the achievement of certain performance milestones over the next four years. Based on the seasonality of Allen Brothers, the acquired business is expected to contribute modestly to the company's earnings in the fourth quarter of 2013.