SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 31, 1998
U.S. Foodservice
(Exact Name of Registrant as Specified in Charter)
Delaware 0-24954 52-1634568
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(State or Other Jurisdiction (Commision File Number) (IRS Employer
of Incorporation) Identification No.)
9830 Patuxent Woods Drive
Columbia, Maryland 21046
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(Address of Principal Executive Offices)(ZIP Code)
Registrant's telephone number, including area code: (410) 312-7100
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
The Registrant hereby incorporates by reference the information contained
in Exhibit 99.1 hereto in response to this Item 5.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Exhibit
99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
U.S. Foodservice
/s/ Lewis Hay III
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Lewis Hay, III,
Executive Vice President and
Chief Financial Officer
Date: September 9, 1998
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PRESS RELEASE EXHIBIT 99.1
U.S. FOODSERVICE ANNOUNCES OUTSOURCING OF ITS
MANUFACTURING CAPACITY
Columbia, Maryland, August 31, 1998 - U.S. Foodservice (NYSE: UFS) and
Kohlberg & Company L.L.C. ("Kohlberg") announced today that they have
closed on the transfer of the business and related assets of Rykoff-Sexton
Manufacturing Division ("RSMD") to a new company formed by Kohlberg and the
senior management of RSMD and agreed upon a long-term supply agreement.
Headquartered in Los Angeles, California, RSMD manufactures over 1,400 food
and non-food products specifically developed to meet the requirements of
foodservice customers. RSMD currently has annual sales of over $115
million.
Commenting on the transaction, Jim Miller, Chairman, Chief Executive
Officer and President of U.S. Foodservice, stated, "While we have been very
pleased with the quality, pricing and service provided by RSMD, our
strategy has been to focus on the distribution of food and related items
and to avoid the distractions of operating non-core businesses. Prior to
our merger with Rykoff-Sexton, Rykoff-Sexton had begun to market RSMD to
potential buyers and we always intended to continue in that direction. We
are very pleased that we have closed on this transaction in a timely
fashion consistent with our original intention. As importantly, we also
believe that the transfer of RSMD to Kohlberg is in the best interests of
both the management and employees and will enable the business to develop
as an independent food manufacturer. We will continue to have a close
relationship with RSMD through the supply agreement. As such, our customers
who have come to rely on the many unique product formulations produced by
RSMD will continue to have the opportunity to purchase these items
exclusively from U.S. Foodservice."
A spokesperson for Kohlberg stated, "RSMD has an outstanding reputation
for quality products and exceptional service earned over its 100-year
history. We are excited to have the opportunity to assist the company in
building on this heritage as it continues to supply U.S. Foodservice and
broadens the marketing of its products to new distributor and foodservice
customers."
U.S. Foodservice is the second largest broadline foodservice
distributor in the United States, distributing food and related products to
restaurants and institutional foodservice establishments across the entire
country. U.S. Foodservice markets and distributes more than 40,000
national, private label and signature brand items to over 130,000
foodservice customers, including restaurants, hotels, healthcare
facilities, cafeterias and schools, and employs over 12,000 foodservice
professionals. U.S. Foodservice's diverse customer base encompasses both
independent and chain businesses, including Buffets, Inc., Perkins Family
Restaurants, Subway, Eurest Dining Services, Cheesecake Factory,
Kindercare, Pizzeria Uno and Ruby Tuesday.
Kohlberg is a private merchant banking firm with offices in Mount
Kisco, New York and Menlo Park, California.
