Us Foods Holding Corp. · NYSE:USFD
Us Foods — Merger or Acquisition (March 2020)
7 slides from Us Foods's merger presentation, Mar 6, 2020
Slide 1: Acquisition of Smart Foodservice Warehouse Stores
Acquisition of Smart Foodservice Warehouse Stores March 6, 2020
Slide 2: Cautionary Statements
Cautionary Statements Information set forth in this presentation, including financial estimates and statements as to the completion and effects of the proposed transaction with Smart Foodservice Warehouse Stores, are “forward-looking statements” within the meaning of the federal securities laws. The
Slide 3: Deal overview and financial benefits
Deal overview and financial benefits Structure and consideration • US Foods will acquire Smart Foodservice Warehouse Stores, a chain of 70 small-format cash and carry stores, from funds managed by affiliates of Apollo Global Management • All cash acquisition valued at $970 million Transaction econom
Slide 4: Strategic benefits and expansion opportunities
Strategic benefits and expansion opportunities The cash and carry channel is large, attractive and growing • $17 billion segment of the foodservice industry growing at 4-5% annually • Higher EBITDA margins than delivered business Profitable growth with independent restaurants • Opportunity to reach
Slide 5: Smart Foodservice Warehouse Stores provide a significant presence in the cash and carry channel
Smart Foodservice Warehouse Stores provide a significant presence in the cash and carry channel Highlights Geographic Footprint • Founded in 1955 and headquartered in • Current stores in Northwest and West Portland, Oregon • Opportunity for national expansion • 70 small-format cash and carry stores
Slide 6: Expands independent restaurant customer base and accelerates case volume growth
Expands independent restaurant customer base and accelerates case volume growth • Smart Foodservice Warehouse Stores provide significant scale in a large, attractive and growing channel of the foodservice industry • Cash and carry adds new small to mid-size independent restaurant customers who prefe
Slide 7: Expect to delever quickly and return to ~3.0x leverage by end of 2021
Expect to delever quickly and return to ~3.0x leverage by end of 2021 Pro Forma Leverage Profile • At closing expect pro forma net leverage to be ~4.0x vs. 3.9x actual at the end of fiscal 2019 • Rapid delevering driven by strong cash flow and strong underlying EBITDA fundamentals US Foods Net Lever
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