The Chefs’ Warehouse Acquires Harris Seafood LLC

Rhea-AI Summary

The Chefs' Warehouse, Inc. (NASDAQ:CHEF) has announced the acquisition of selected assets from Harris Seafood LLC, based in Orlando, Florida, aimed at accelerating seafood category growth in the Southeast. CEO Christopher Pappas expressed excitement about leveraging Harris Seafood's local relationships to enhance seafood quality. The acquisition aligns with the company's focus on high-quality food distribution across North America, supporting their commitment to chefs and culinary excellence.

Positive

• Acquisition enhances growth potential in the seafood category in Southeast.
• Access to Harris Seafood's local sourcing relationships could improve product quality.
• Strengthens Chefs' Warehouse's commitment to culinary excellence.

Negative

• None.

Acquisition Accelerates Expansion in Southeast

RIDGEFIELD, Conn., Oct. 06, 2020 (GLOBE NEWSWIRE) -- The Chefs' Warehouse, Inc. (NASDAQ:CHEF), a premier distributor of specialty food products in North America, today announced that it has acquired selected assets of Harris Seafood LLC, based in Orlando, Florida.

“We are very excited to welcome Harris Woodsby to the CW family,” said Christopher Pappas, Chairman and Chief Executive Officer of The Chefs' Warehouse, Inc. “This acquisition gives The Chefs’ Warehouse a platform on which to accelerate the growth of our seafood category in Orlando and South Florida. We look forward to leveraging Harris Seafood’s local sourcing relationships and category expertise to offer the market the highest quality seafood. For 35 years we have prided ourselves in supplying the world’s greatest ingredients to North America’s best chefs; this acquisition deepens this commitment.”

"I am incredibly excited to join the team! The Chefs’ Warehouse and Allen Brothers epitomize what we are known for in the industry: Consistent high-quality, impeccable service, and fair pricing,” said Harris Woodsby, Founder of Harris Seafood LLC. “I look forward to helping Chefs’ Warehouse grow the seafood category in the Southeast and beyond.”

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
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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 Company's sensitivity to general economic conditions, including the current economic environment, changes in disposable income levels and consumer discretionary spending on food-away-from-home purchases; the Company's vulnerability to economic and other developments in the geographic markets in which it operates; the risks of supply chain interruptions due to a lack of long-term contracts, severe weather or more prolonged climate change, work stoppages or otherwise; the risk of loss of customers due to the fact that the Company does not customarily have long-term contracts with its customers; the risks of loss of revenue or reductions in operating margins in the Company’s protein business as a result of competitive pressures within this segment of the Company’s business; changes in the availability or cost of the Company's specialty food products; the ability to effectively price the Company's specialty food products and reduce the Company's expenses; the relatively low margins of the foodservice distribution industry and the Company's and its customers' sensitivity to inflationary and deflationary pressures; the Company's ability to successfully identify, obtain financing for and complete acquisitions of other foodservice distributors and to integrate and realize expected synergies from those acquisitions; the Company's ability to service customers from its new Chicago, San Francisco and Las Vegas distribution centers and the expenses associated therewith; increased fuel cost volatility and expectations regarding the use of fuel surcharges; fluctuations in the wholesale prices of beef, poultry and seafood, including increases in these prices as a result of increases in the cost of feeding and caring for livestock; the loss of key members of the Company's management team and the Company's ability to replace such personnel; and the strain on the Company's infrastructure and resources caused by its growth. 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 Securities and Exchange Commission (“SEC”) on March 10, 2017 and other reports filed by the Company with the SEC since that date. The Company is not undertaking to update any information in the foregoing report until the effective date of its future reports 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 is the significance of CHEF's acquisition of Harris Seafood LLC?

The acquisition allows CHEF to enhance its seafood category in Southeast, leveraging local sourcing and expertise.

When was the acquisition of Harris Seafood LLC announced by The Chefs' Warehouse?

The acquisition was announced on October 6, 2020.

How does the acquisition of Harris Seafood LLC impact CHEF's market position?

It positions CHEF to accelerate growth in the seafood market within Orlando and South Florida.

What are the expected benefits of CHEF acquiring Harris Seafood LLC?

The expected benefits include improved seafood quality and expanded market reach through local expertise.