US Foods Inc. (NYSE: USFD) is buying seafood distributor Save on Seafood to expand its reach in the Southeast U.S. The deal continues the buyer’s acquisition spree after a proposed merger with competitor Sysco Corp. (NYSE: SYY) fell apart.
St. Petersburg, Florida-based Save on Seafood provides frozen seafood to grocery stores and restaurants in the Southeast. The target’s products include: whole fish, fish fillets, shrimp, shellfish, lobster, octopus, and other specialty items like shrimp burgers. Save on Seafood food generated more than $80 million in annual sales and will now operate as a subsidiary of US Foods, joining the buyer’s stock yards business. As part of the deal, US Foods will retain the target’s 170 employees and its production facility in Florida. The deal is expected to close on Oct. 28th.