US Foods Holding Corp., based in Rosemont, Illinois has filed Initial Prospectus (IP) in Form S-1 with the US Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company has appealed to get enlisted under the New York Stock Exchange with the symbol USFD on Tuesday. However, no underwriter has been listed in the filing.
The submitted Form S-1 contains no pricing details while offering value up to $100 million. The amount is believed to be mentioned for to calculate fees and revision appears very likely.
The second largest food service distributor employs around 25,000 workers and annual sales of $23 billion. It has reported a net loss of $73 million last year.
Sysco has agreed to acquire the company in 2013 for about $3.5 billion. The deal has been blocked by a federal judge stating a merger of the food-distribution giants may reduce competition. It may also contribute to raise prices for hotels and restaurants, reports Bloomberg.
The distribution giant has posted a net sale of $23 billion during the year ended on September 26, 2015. Large fragmented foodservice distribution industry of the US has reported a total sale of $268 billion in 2015, according to news published in 24/7 Wall St. Clayton, Dubilier & Rice (CD&R) and Kohlberg Kravis Roberts (KKR), the two private investment firms now own US Foods. However, the owners have planned to keep control over majority of the company's voting stock. The IPO proceeds have been narrated to be spent for paying off debts and other essential purposes, reports ABC News. KKR and CD&R have acquired US Foods for around $7.1 billion in a leveraged buyout completed in 2007. Its distribution clients include Devonshire Desserts and Molly's Kitchen Empanadas. The submitted initial prospectus suggests that the distribution giant has witnessed a net loss of $73 million against net sales of $23 billion in 2014. However, it has earned $177 million against net sales of $17.2 billion up to the 39th week of 2015. US Foods have been reported to supply from more than 250,000 customer locations. It also provides over 400,000 fresh, frozen and dry food stock-keeping units (SKUs) as well as non-food items. However, all its supplied items have been sourced from more than 5000 suppliers. Above 4000 sales associates manage customer relationships at local, regional and national levels. US Foods' extensive network of 61 distribution facilities and a fleet of approximately 6,000 trucks provide an efficient operating model.
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