U.S. Foods Holding has registered an amended Form S-1 with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to price its 44.44 million shares within the expected price range of $21 to $24, with an overallotment option for an additional 6.67 million shares. At the maximum price, the entire offering is valued up to $1.23 billion. The company intends to list on the New York Stock Exchange under the symbol USFD.
The underwriters for the offering are Goldman Sachs, Morgan Stanley, JPMorgan, Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, Wells Fargo, KKR, BMO Capital Markets, Guggenheim, ING, Rabo Securities and Natixis.
U.S. Foods is among America’s largest food companies and one of only two foodservice distributors with a national footprint in the United States. With net sales of $23 billion in the 12 months ended January 2, 2016, it is the second largest foodservice distributor in the country, with a 2015 market share of roughly 9%. The U.S. foodservice distribution industry is large, fragmented and growing, with total industry sales of $268 billion in 2015.
In the filing, the company said:
Our mission is to be First in Food. We strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers. This mission is supported by our strategy of Great Food. Made Easy. It centers on providing a broad and innovative offering of high-quality products to our customers, as well as a comprehensive suite of industry-leading e-commerce, technology, and business solutions. Our scale gives us the ability to serve customers nationwide with a highly efficient distribution network and centralized business processes. As we say on our trucks, we are Keeping Kitchens Cooking across America.
U.S. Foods supplies over 250,000 customer locations nationwide. These include independently owned single- and multi-unit restaurants, regional restaurant concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.
The company also provides over 400,000 fresh, frozen and dry food stock-keeping units, as well as non-food items, sourced from over 5,000 suppliers. Its more than 4,000 sales associates manage customer relationships at local, regional and national levels. They are supported by sophisticated marketing and category management capabilities, as well as a sales support team that includes world-class chefs and restaurant operations consultants. The extensive U.S. Foods network of 61 distribution facilities and a fleet of approximately 6,000 trucks provide an efficient operating model, allowing it to offer high levels of customer service.
The net proceeds from this offering are intended to be used for repaying indebtedness, as well as for working capital and general corporate purposes.
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