Foodservice Deal Clears More Hurdles
The sale of Columbia-based U.S. Foodservice to a pair of private equity firms cleared another hurdle today. Shareholders of the food distributor's parent company, Netherlands-based grocery chain Royal Ahold, approved the sale of U.S. Foodservice to funds operated by Clayton Dubilier & Rice and Kohlberg Kravis Roberts for $7.1 billion, according to the company.
U.S. Foodservice, one of the nation's largest suppliers of food to hotels and restaurants, accounts for 47 percent of Ahold's U.S. operations and 34 percent of its total sales. Ahold, which also owns the Giant and Stop & Shop supermarket chains, bought U.S. Foodservice in 2000 for $3.6 billion. A 2003 accounting scandal at U.S. Foodservice forced Ahold to restate more than $800 million in earnings, and its stock lost 60 percent of its value.
-Mike Shepard, Washington Business Editor
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