US Foods Inc. is acquiring Freshway Foods, a fruit and vegetable processor and distributor to Eastern U.S. customers. The buyer began hunting for other acquisitions after the proposed merger with Sysco Corp. (NYSE: SYY) got called off.

Terms of the deal were not disclosed. US Foods will keep Freshway’s Sidney, Ohio, 100,000-square-foot building open and Freshway’s more than 400 employees will become US Foods employees. Freshway cuts, cleans, chops and packages raw produce for customized products delivered to foodservice companies and retailers in the Eastern U.S. The company also has a logistics and transportation business that offers full-truckload and less-than-truckload service in its distribution area. Freshway Foods is owned by brothers Phil and Frank Gilardi, who formed the business in 1988 out of their father’s food wholesale business.

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