RIDGEFIELD, Conn. (AP) — Specialty food products distributor The Chefs' Warehouse Inc. said Wednesday that it has acquired meat seller Allen Brothers Inc. in a $29.9 million deal including debt.
Allen Brothers, based in Chicago, was founded in 1893. It sells meat to restaurants, hotels, casinos and country clubs. It also sells directly to consumers through a catalog and online business. The company is expected to generate revenue between $80 million and $85 million in 2013.
Chefs' Warehouse, based in Ridgefield, Conn., said the deal provides it with new opportunities for growth.
The company said it paid $20 million for the company in cash and the remaining $9.9 million represents liabilities it assumed, as well as payments to be made over the next four years based on performance milestones. The company said the acquired business is expected to contribute modestly to its earnings in the fourth quarter of 2013 and add 1 to 3 cents per share for 2014.
Shares of Chefs' Warehouse fell 61 cents, or 2.4 percent, to $24.63 in midday trading. Its shares had risen almost 60 percent so far this year.