The Chefs’ Warehouse Acquires Certain Assets of Martin Preferred

Rhea-AI Summary

The Chefs' Warehouse (NASDAQ:CHEF) announced the acquisition of certain assets from Martin Preferred Foods, based in Houston, Texas, to enhance its specialty protein distribution in the region. This strategic move aims to strengthen its presence in the Texas market and expand the Allen Brothers brand offerings. The CEO of Martin Preferred Foods expressed excitement over refocusing on manufacturing value-added proteins post-sale. This acquisition aligns with The Chefs' Warehouse's goal of servicing more chefs with high-quality products.

Positive

• Acquisition strengthens The Chefs' Warehouse's presence in the Texas market.
• Expansion of product offerings with the Allen Brothers brand.
• Partnership allows Martin Preferred Foods to focus on manufacturing value-added proteins.

Negative

• None.

Acquisition Accelerates Specialty Protein Expansion in Texas

RIDGEFIELD, Conn., Oct. 11, 2021 (GLOBE NEWSWIRE) -- The Chefs' Warehouse, Inc. (NASDAQ:CHEF), a premier distributor of specialty food products in North America, today announced that it has acquired certain assets of Martin Preferred Foods, based in Houston, Texas.  

“We are very excited to have partnered with Chris Pappas and The Chefs’ Warehouse team on this deal,” said Jeff Tapick, CEO of Martin Preferred Foods. “The disposition of these assets allows Martin Preferred Foods to shift our focus to manufacturing value-added proteins for foodservice and retail customers across the nation.”

“It was a pleasure to work with Jeff Tapick and his team on this deal. They have been great partners throughout this process,” said Christopher Pappas, Chairman and CEO of The Chefs' Warehouse, Inc. “This acquisition offers The Chefs’ Warehouse the opportunity to continue to build upon our success in the Texas market. We are thrilled to be in a position to bring the Allen Brothers brand to our local customers in Texas.”   

Since inception in 1985, The Chefs’ Warehouse has been purveying high-quality, luxury, artisan, local and specialty products for many of the best chefs in America.

About The Chefs' Warehouse

The Chefs' Warehouse, Inc. (http://www.chefswarehouse.com) is a premier distributor of specialty food products in the United States and Canada focused on serving the specific needs of chefs who own and/or operate some of the nation's leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos and specialty food stores. The Chefs' Warehouse, Inc. carries and distributes more than 55,000 products to more than 34,000 customer locations throughout the United States and Canada.

Forward-Looking Statements

Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to the following: our sensitivity to general economic conditions, including disposable income levels and changes in consumer discretionary spending; our ability to expand our operations in our existing markets and to penetrate new markets through acquisitions; we may not achieve the benefits expected from our acquisitions, which could adversely impact our business and operating results; we may have difficulty managing and facilitating our future growth; conditions beyond our control could materially affect the cost and/or availability of our specialty food products or center-of-the-plate products and/or interrupt our distribution network; our increased distribution of center-of-the-plate products, like meat, poultry and seafood, involves increased exposure to price volatility experienced by those products; our business is a low-margin business and our profit margins may be sensitive to inflationary and deflationary pressures; because our foodservice distribution operations are concentrated in certain culinary markets, we are susceptible to economic and other developments, including adverse weather conditions, in these areas; fuel cost volatility may have a material adverse effect on our business, financial condition or results of operations; our ability to raise capital in the future may be limited; we may be unable to obtain debt or other financing, including financing necessary to execute on our acquisition strategy, on favorable terms or at all; interest charged on our outstanding debt may be adversely affected by changes in the method of determining London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with an alternative rate; our business operations and future development could be significantly disrupted if we lose key members of our management team; and significant public health epidemics or pandemics, including COVID-19, may adversely affect our business, results of operations and financial condition. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. A more detailed description of these and other risk factors is contained in the Company’s most recent annual report on Form 10-K filed with the SEC on February 23, 2021 and other reports filed by the Company with the SEC since that date. The Company is not undertaking to update any information until required by applicable laws. Any projections of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced projections, but it is not obligated to do so.

Contact:
Investor Relations
Jim Leddy, CFO, (718) 684-8415

FAQ

What are the details of the acquisition by The Chefs' Warehouse?

The Chefs' Warehouse acquired certain assets of Martin Preferred Foods to boost its specialty protein distribution in Texas.

How will the acquisition impact the stock symbol CHEF?

The acquisition is expected to enhance CHEF's market position in Texas and increase product offerings, potentially impacting future performance.

What brands will The Chefs' Warehouse introduce in Texas after the acquisition?

The Chefs' Warehouse plans to expand its offerings by introducing the Allen Brothers brand in Texas.

What is the strategic importance of this acquisition for The Chefs' Warehouse?

The acquisition is strategically important as it allows The Chefs' Warehouse to enhance its operations and product offerings within the growing Texas market.