In reporting its 2023 fourth quarter and full-year financial results on Feb. 20, foodservice distributor US Foods announced a pair of acquisitions — one that is pending and one that closed during the fourth quarter.

US Foods said it is set to acquire IWC Food Service, a broadline foodservice distributor that serves the greater Nashville, TN area. Its product lineup includes an array of food categories, a beverage service program, janitorial items and a complete line of chemicals for dishwashing and laundry.

Terms were not disclosed for the transaction, which is expected to close during 2024’s second quarter.

Cookeville, TN-based IWS has approximately 220 associates and $200 million in annual sales. It is a member of the Frosty Acres buying group. IWA was founded in 1957.

US Foods added that during the fourth quarter, it acquired Saladino’s Foodservice, an independent broadline foodservice distributor based in Fresno, CA. The purchase price was $56 million. Founded in 1980, Saladino’s notes that it is the largest independent foodservice distributor in California and the 17th largest foodservice distributor in the U.S.

Saladino’s product categories include a range of food and beverages, foodservice disposables, janitorial and linens, office supplies, safety products and smallwares.

Financials

US foods reported total 4Q23 sales of $8.9 billion, up 4.9% year-over-year, driven by case volume growth that was up 5.6%. Gross profit of $1.6 billion increased 9.4% year-over-year on margin of 17.8% (17.3% adjusted). 4Q23 operating profit of $278 million jumped 41.8%, while net profit of $147 million likewise jumped 58.1%. Adjusted EBITDA of $388 million increased 10.9% year-over-year.

For the full year, US Foods’ 2023 total sales of $35.6 billion increased 4.% vs. 2022, driven by case volume growth that was up 4.4%. Gross profit of $6.1 billion increased 11.9% on margin of 17.3% (also 17.3% adjusted). Operatingn profit of $1.02 billion nearly doubled the $594 of 2022, while net profit of $506 million likewise jumped from 2022’s $265 million. Adjusted EBITDA of $1.56 billion increased 19.0% vs. 2022.