Thursday, November, 21, 2019 03:33:50

HF Foods seals merger deal with B&R to extend services across America

The merger could make the new company the largest food suppliers for Asian restaurants in the U.S.

 

HF Foods Group Inc., a leading distributor of fresh, frozen and dry foods based in America, has recently revealed to have completed its merger with B&R Global Holding Inc (B&R).

For the record, B&R Global Holding is a wholesaler that supplies to around 6,800 restaurants across the western region of America since 1999.

The merger will apparently make HF Foods and B&R the largest food suppliers for restaurants serving oriental cuisines in America. The two companies will co-jointly own 14 distribution centers and a total of over 340 refrigerated vehicles to serve around 10,000 restaurants across 21 U.S. states.

Reportedly, HF Foods and B&R will deploy a team of 960 employees two call centers in China to provide constant sales and service support to its customers, who primarily speak in Chinese or Mandarin dialects.

As per the terms of the contract, HF Foods has invested 30.7 million worth of common stock shares for the former stakeholders of B&R. B&R will be HF Foods’ wholly owned subsidiary after the merger.

Sources close to the matter reported that Zhou Min Ni will continue to lead HF Foods as chairman. He along with former chairman and CEO of B&R Peter Zhang will operate as Co-CEOs of the Group. Peter will also act as the CFO of the Group.

Zhou was reported saying that the merger will allow the companies to leverage their combined expertise and optimize their services to offer an increased product range to their respective clients.

The venture will not only create a platform for future alliances but also improve purchase procedures and cut duplicate operating costs, Zhou claimed.

According to Peter Zhang, the merger is ideal for B&R’s commitment to meet the growing demands of Chinese takeaways. He believes that the deal will enable the group to offer a wider range of products along with various options to its customers.

The merger will seemingly offer a platform to B&R to expand its market share and deliver high-quality products effectively at competitive prices.

Notably, HF Foods and B&R generated around $800 million in sales collectively and $39 million in adjusted EBITDA. The companies also acquired a $22 million net profit in total after tax deductions.

Source Credits –

https://www.globenewswire.com/news-release/2019/11/04/1940779/0/en/HF-Foods-Completes-Merger-with-B-R-Global-Holdings.html