NEW YORK, July 3 /PRNewswire/ -- Kohlberg Kravis Roberts & Co. and
Clayton, Dubilier & Rice, Inc. announced today that they have completed the
previously announced acquisition of U.S. Foodservice, the second largest
broadline foodservice distributor in the U.S., from Royal Ahold N.V. (NYSE:
AHO). Funds affiliated with KKR and CD&R are equal partners in the
transaction, valued at $7.1 billion.
"We look forward to working with U.S. Foodservice's strong management
team to continue to drive operating performance improvements," said Charles
A. Banks, Chairman of the Board of Directors of U.S. Foodservice and a CD&R
operating partner. "The company's leadership position in the highly
fragmented foodservice industry provides attractive organic and
acquisition- related growth opportunities."
Michael M. Calbert, a Member of KKR, stated, "We are pleased to
complete the acquisition of U.S. Foodservice, with its strong market
position and future growth prospects. We look forward to partnering with
Bob Aiken, Chief Executive Officer, and the rest of the management team to
pursue U.S. Foodservice's many attractive growth and operational
improvement opportunities."
U.S. Foodservice generated revenues of more than $19 billion in 2006
through operations covering a geographic area in which over 90 percent of
the U.S. population resides. The company provides food and related products
to independent restaurants, healthcare and hospitality customers,
educational institutions and prominent multi-unit restaurant companies.
Financing for the transaction was provided by Citigroup, Deutsche Bank,
Goldman, Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. and
Royal Bank of Scotland.
Citigroup, Deutsche Bank, Morgan Stanley & Co. and Rabobank acted as
financial advisors to CD&R and KKR. Simpson Thacher & Bartlett LLP acted as
legal advisor to the buyers and Debevoise & Plimpton LLP acted as legal
counsel in connection with the financing.
About KKR
Kohlberg Kravis Roberts & Co. (KKR) is one of the world's oldest and
most experienced private equity firms specializing in management buyouts.
Founded in 1976, it has offices in New York, Menlo Park, London, Paris,
Hong Kong and Tokyo. Throughout its history, KKR has brought a long-term
investment approach to its portfolio companies, focusing on working in
partnership with management teams and investing for future competitiveness
and growth. Since its founding, KKR has completed more than 150
transactions with an aggregate value of over $279 billion.
(http://www.kkr.com)
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. (CD&R) is a leading private equity
investment firm that has earned consistent, superior investment returns
using an integrated operational and financial approach to building and
growing portfolio businesses. CD&R's portfolio investments have included
Alliant Foodservice, sold to Ahold in 2001, and Brakes Foodservice, the
U.K.'s market leader with operations in France, as well as Hertz, Culligan
International, and VWR International. CD&R recently announced an agreement
to acquire ServiceMaster in a transaction valued at $5.5 billion. The firm
is based in New York and London. (http://www.cdr-inc.com)
About U.S. Foodservice
U.S. Foodservice is a recognized leader in the American foodservice
industry, delivering food and related products to independent restaurants,
healthcare and hospitality customers, educational institutions and
prominent multi-unit restaurant companies. U.S. Foodservice's combination
of customer focus, industry-leading commitment to service and a powerful
portfolio of national and private label brands allows the Company to
deliver exceptional value to every customer.
SOURCE Kohlberg Kravis Roberts & Co.; Clayton, Dubilier & Rice,
Inc.
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Related links:
http://www.kkr.com
http://www.cdr-inc.com/
CONTACT:
Mark Semer, or Ruth Pachman, of Kekst and
Company for KKR, +1-212-521-4800; or Thomas Franco,
+1-212-407-5225, for Clayton, Dubilier & Rice; or Daniel Jacobs
of Broadgate Consultants, +1-212-232-2227
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