Chefs' Warehouse Buys Allen Brothers

(RTTNews) - Chefs' Warehouse, Inc. (CHEF) said Wednesday that it has acquired substantially all of the assets of Chicago, Illinois-based Allen Brothers, Inc., a processor and distributor of premium quality meats.

Allen Brothers is expected to generate about $80.0 million to $85.0 million in annualized net sales in 2013.

The total purchase price for the business is expected to be about $29.9 million, subject to customary working capital adjustments, of which $20.0 million was paid at closing with cash proceeds from Chefs' Warehouse's recently completed common stock offering. The remaining $9.9 million represents liabilities assumed by Chefs' Warehouse and earnout consideration to be paid upon the achievement of certain performance milestones over the next four years.

Based on the seasonality of Allen Brothers, the acquired business is expected to contribute modestly to Chefs' Warehouse's earnings in the fourth quarter of 2013.

Chefs' Warehouse said it currently expects the Allen Brothers business, coupled with the build-out of its CW-Chicago branch, to contribute about $0.01 to $0.03 to the company's consolidated earnings per share in 2014.