Chefs’ Warehouse to draw on credit facility to acquire Del Monte Meat

New York, Jan. 12 – Chefs’ Warehouse, Inc. said it will use borrowings on its credit facility to help fund the $191.2 million acquisition of Del Monte Capitol Meat Co. announced Monday.

The purchase price will be paid as $127.5 million of cash, to be funded from cash on hand and bank borrowings, 1.2 million shares valued at $22.00 per share and $38.3 million of 2.5% convertible subordinated notes with a six-year maturity and a $29.70 conversion price.

A further $25.5 million is expected to be paid as contingent consideration if adjusted EBITDA targets are met over the six years following closing of the acquisition.

Chefs’ Warehouse expects Del Monte to generate $200 million to $225 million of net sales in 2015, according to a news release.

Chefs’ Warehouse is a Ridgefield, Conn. distributor of specialty food products. Del Monte Capitol Meat is a supplier of beef, pork, lamb, veal, poultry and seafood products to Northern California.

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