The Chefs’ Warehouse acquires Michael’s Finer Meats

US-based speciality food firm The Chefs’ Warehouse has acquired meat and seafood supplier Michael’s Finer Meats for $54.3m, as part of its strategy to expand into the US midwest.

Michael’s Finer Meats, headquartered in Columbus, Ohio, supplies custom cut beef, seafood and other meat products to restaurants, country clubs, hotels and casinos in Indiana, Illinois, Ohio and Pennsylvania, and has annual revenues of approximately $80m.

The Chefs’ Warehouse chairman and chief executive officer Chris Pappas said the company is seeking to build upon Michael’s products and customer service, as it expands into the midwest region.

"Michael’s will complement our existing product offerings and significantly enhance our capabilities in centre-of-the-plate categories," Pappas added.

Michael’s Finer Meats CEO John Bloch said the addition of The Chefs’ Warehouse’s products will allow the company to strengthen its presence in the region.

The Chefs’ Warehouse funded the acquisition through borrowings under its existing revolving credit facility.

The company expects the acquisition to contribute approximately $0.06 to $0.08 per share annually once fully integrated; however, Michael’s Finer Meats is not likely to contribute significantly to the company’s 2012 results due to the timing of the acquisition and short-term integration costs.

This deal marks the company’s fourth acquisition in just over a year.

The Chefs’ Warehouse supplies speciality food products to restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools and speciality food stores in New York, Boston, Philadelphia, Washington DC, Los Angeles, San Francisco, Miami, Las Vegas and Portland.

It distributes about 16,700 products to more than 9,800 customer locations throughout the US.