The Chefs’ Warehouse announces the acquisition of Chef Middle East, investing in the fast-growing GCC region
November 01 2022 - 8:30AM
The Chefs' Warehouse, Inc. (NASDAQ:CHEF), a premier distributor of
specialty food products in North America, is excited to announce
that it has acquired Chef Middle East (CME), a specialty food
distributor with operations in the United Arab Emirates, Qatar and
Oman, from Gulf Capital, a leading alternative asset management
firm in the Gulf and Southeast Asia.
“This is exciting news for The Chefs’ Warehouse,
our partners, employees and our new colleagues at Chef Middle East.
Similar to our positioning in the US and Canada, CME is the premier
provider of specialty food products to the higher-end restaurants,
hotels and catering establishments in the region. Their product
portfolio mirrors ours in many ways and includes high-quality
imported specialty foods, meat and seafood, pastry and bakery goods
along with broadline product lines. We thank Gulf Capital for
entrusting us to continue the growth of CME into a leading
foodservice player.” – The Chefs’ Warehouse Chairman &
CEO, Christopher Pappas.
The region’s high-end income demographic,
coupled with Dubai’s role as a regional tourism and commercial hub,
lends itself to the type of customer and service model that The
Chefs’ Warehouse (CW) has thrived on for more than 35 years. In
addition, many of the CW customers have opened locations in the
region and new openings continue to contribute to the growth in the
industry. “We are grateful for the support from both PwC and deNovo
in getting this transaction over the finish line.”- The Chefs’
Warehouse VP of M&A, Nick Ktorides.
Chef Middle East is led by a strong, seasoned
management team with multiple years of experience in the global
food distribution space. As per Steve Pyle, Chef Middle East
CEO, “We couldn’t hope for a better home for our valued
employees, customers and supply partners that have supported us
over so many years. The Chefs’ Warehouse focus on quality and
service will preserve the essence of what makes CME an exceptional
company, while leveraging technology, infrastructure, and
relationships to add more value to our customers and ensure our
continued growth.”
As per Chris Pappas, “Combined with the significant organic and
acquired growth ahead of us in the US and Canada,
the acquisition of Chef Middle East gives us an
additional platform from which we can leverage our business
expertise. We welcome CME to The Chefs’ Warehouse and look forward
to growing together.”
The acquisition of CME is expected to generate between $160 and
$180 million in annual net sales and $11- $14 million in
EBITDA.
About The Chefs' Warehouse
The Chefs' Warehouse, Inc.
(http://www.chefswarehouse.com) combines
exceptional quality and brand building with broadline food service
distribution for more than 35 years. With Protein, Specialty,
Produce, and Broadline offerings, we service the most discerning
chefs in a hybrid approach of convenience and superior quality. We
introduce more than 2,000 artisan producers of the world’s finest
ingredients from over 40 countries to the finest chefs in the
world. We passionately consult, sell, and build relationships with
more than 35,000 customers through the most experienced network of
over 600 consultive sales associates, best-in-breed technology,
rapid service, and support levels that solidify our long-standing
ties to both established and up-and-coming premium
restaurants.
About Chef Middle East
Chef Middle East (www.chefmiddleeast.com) is the
one stop solution for all quality food and beverage requirements,
and the partner of choice to deliver memorable culinary experiences
to diners. With over 25 years in business, Chef Middle East is the
leading distributor of specialty food and beverage products,
serving Chefs and culinary, pastry and bar professionals in the
Middle East with unparalleled quality ingredients and cutting-edge
foodservice kitchen solutions from leading brands around the world.
The distributor services more than 3,000 customers from 5-star
hotels and world-class dining to international chains and concept
restaurants in the UAE, Qatar, and Oman. They also provide the same
exceptional quality of service and products to customers in
locations such as the Indian Ocean, Africa, CIS. In their
continuous quest to elevate the concept of distributorship in the
regional foodservice landscape, their team always aims at providing
the best quality ingredients with an impeccable service and
inimitable culinary support to their customers. As curious
connoisseurs, Chef Middle East strive to make every dining
experience beyond exceptional.
Forward-Looking Statements
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 include, but are
not limited to, the Company’s sensitivity to general economic
conditions, including disposable income levels and changes in
consumer discretionary spending; the Company’s ability to expand
its operations in its existing markets and to penetrate new markets
through acquisitions; the Company may not achieve the benefits
expected from its acquisitions, which could adversely impact its
business and operating results; the Company may have difficulty
managing and facilitating its future growth; conditions beyond the
Company’s control could materially affect the cost and/or
availability of its specialty food products or center-of-the-plate
products and/or interrupt its distribution network; the Company’s
increased distribution of center-of-the-plate products, like meat,
poultry and seafood, involves increased exposure to price
volatility experienced by those products; the Company’s business is
a low-margin business and its profit margins may be sensitive to
inflationary and deflationary pressures; because the Company’s
foodservice distribution operations are concentrated in certain
culinary markets, the Company is susceptible to economic and other
developments, including adverse weather conditions, in these areas;
fuel cost volatility may have a material adverse effect on the
Company’s business, financial condition or results of operations;
the Company’s ability to raise capital in the future may be
limited; the Company may be unable to obtain debt or other
financing, including financing necessary to execute on our
acquisition strategy, on favorable terms or at all; and the
Company’s business operations and future development could be
significantly disrupted if it loses key members of its management
team. 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. A more detailed description of
these and other risk factors is contained in the Company’s most
recent annual report on Form 10-K filed with the Securities and
Exchange Commission (“SEC”) on March 1, 2019 and
other reports filed by the Company with the SEC since that date.
The Company is not undertaking to update any information in the
foregoing report 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.
Contact:Investor RelationsJim Leddy, CFO, (718)
684-8415
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