United Natural Foods Signs Definitive Agreement to Acquire Trudeau Foods,
PROVIDENCE, R.I. -- September 26, 2013
United Natural Foods, Inc. (Nasdaq: UNFI) today announced that it has entered
into a definitive agreement to acquire all of the equity interests of Trudeau
Foods, LLC (“Trudeau Foods”) from Trudeau Holdings, LLC, a portfolio company
of Arbor Investments II, LP. Trudeau Foods is the largest Minnesota-based
distributor of natural, organic and specialty food products. The transaction
is subject to customary closing conditions and is expected to close by
September 30, 2013. Upon closing, Trudeau Foods will be operated as a
wholly-owned subsidiary of UNFI.
“This acquisition is the latest step in our strategy to grow our market share
and deliver a complete basket of specialty, natural and organic products to
our customers,” commented Steve Spinner, UNFI’s President and Chief Executive
Officer. “We are excited to welcome Trudeau Foods to our organization. Both
companies have a tremendous history of commitment to servicing their
customers, and we are enthusiastic about the growth prospects for this
Trudeau Foods serves over 600 customer locations, including chain and
independent grocers, wholesalers and meat markets in Minnesota, North Dakota,
Wisconsin and Michigan’s Upper Peninsula. Trudeau Foods carries a full range
of fine-quality and specialty gourmet meats, frozen foods, dairy, bakery,
deli, seafood and dry grocery items under a wide breadth of national, regional
and private label brands.
About United Natural Foods
United Natural Foods, Inc. (http://www.unfi.com) carries and distributes more
than 65,000 products to more than 27,000 customer locations throughout the
United States and Canada. The Company serves a wide variety of retail formats
including conventional supermarket chains, natural product superstores,
independent retail operators and the food service channel. United Natural
Foods, Inc. was ranked by Fortune in 2006 - 2010 and 2012 as one of its "Most
Admired Companies," winner of the Supermarket News 2008 Sustainability
Excellence Award, recognized by the Nutrition Business Journal for its 2009
Environment and Sustainability Award and chosen by Food Logistics Magazine as
one of its 2012 Top 20 Green Providers.
About Arbor Investments
Founded in 1999 and headquartered in Chicago, Illinois, Arbor Investments is a
specialized private equity firm that focuses exclusively on acquiring premier
companies in the food and beverage industry. The firm has acquired or invested
in over 32 food and beverage companies in North America. For more information,
For more information on United Natural Foods, Inc., visit the Company's
website at www.unfi.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding the Company's business that
are not historical facts are "forward-looking statements" that involve risks
and uncertainties and are based on current expectations and management
estimates; actual results may differ materially. The risks and uncertainties
which could impact these statements are described in the Company's filings
under the Securities Exchange Act of 1934, as amended, including its annual
report on Form 10-K filed with the Securities and Exchange Commission ("SEC")
on September 26, 2012, its quarterly reports on Form 10-Q filed with the SEC
on December 6, 2012, March 6, 2013 and June 6, 3013, and other filings the
Company makes with the SEC, and include, but are not limited to, the Company's
dependence on principal customers; the Company's sensitivity to general
economic conditions, including the current economic environment, changes in
disposable income levels and consumer spending trends; the Company's ability
to reduce its expenses in amounts sufficient to offset its increased focus on
sales to conventional supermarkets and the resulting lower gross margins on
the sales; the Company's reliance on the continued growth in sales of natural
and organic foods and non-food products in comparison to conventional
products; the Company's ability to timely and successfully deploy its new
warehouse management system throughout its distribution centers; increased
fuel costs; the Company's sensitivity to inflationary and deflationary
pressures; the relatively low margins and economic sensitivity of the
Company's business; the potential for disruptions in the Company's supply
chain by circumstances beyond its control; the risk of interruption of
supplies due to lack of long-term contracts, severe weather, work stoppages or
otherwise; the ability to identify and successfully complete acquisitions of
other natural, organic and specialty food and non-food products distributors;
and management's allocation of capital and the timing of capital expenditures.
Any forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date made.
The Company is not undertaking to update any information in the foregoing
reports until the effective date of its future reports required by applicable
laws. Any projections of future results of operations are based on a number of
assumptions, many of which are outside the Company's control and should not be
construed in any manner as a guarantee that such results will in fact occur.
These projections are subject to change and could differ materially from final
reported results. The Company may from time to time update these publicly
announced projections, but it is not obligated to do so.
United Natural Foods, Inc.
Chief Financial Officer
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