Strategic Acquisition of Emerging Brands Cultivator and Distributor
Transaction Expected to be Neutral to Fiscal 2017 Earnings and Modestly
Accretive in Fiscal 2018
PROVIDENCE, R.I.--(BUSINESS WIRE)--Aug. 11, 2016--
United Natural Foods, Inc. (Nasdaq: UNFI) (“UNFI”) today announced that
it has acquired all of the outstanding stock of Gourmet Guru for an
undisclosed amount, in an all cash transaction. Founded in 1996, Gourmet
Guru is a distributor and merchandiser of fresh and organic food
focusing on new and emerging brands. The acquisition enhances UNFI’s
strength in finding and cultivating emerging fresh and organic brands
and further expands UNFI’s presence in key urban markets. Gourmet Guru
had $50 million in net sales for the twelve months ended June 30, 2016.
The transaction is expected to be neutral to UNFI’s fiscal 2017 earnings
and modestly accretive to UNFI’s earnings in Fiscal 2018.
“We are excited to strengthen our expertise in identifying new and
fast-growing health and wellness brands with the strategic acquisition
of Gourmet Guru,” commented Steven Spinner, UNFI’s President and Chief
Executive Officer. “We look forward to working with Jeff Lichtenstein,
CEO of Gourmet Guru, who will remain at the company in a leadership
role.”
“Gourmet Guru brings diverse skills in merchandising and service,
targeting cities and high traffic locations, which will enhance UNFI’s
unique ability to deliver on the most innovative and local brands,” said
Kirsten Hogan, UNFI’s National Vice President of Retail Services.
“UNFI recognizes the importance of helping exciting and new producers of
fresh and organic foods and Gourmet Guru is proud to become a part of
UNFI,” said Mr. Lichtenstein. “We look forward to helping UNFI bring
exciting and differentiated products to market.”
About United Natural Foods
UNFI carries and distributes more than 90,000 products to more than
45,000 customer locations throughout the United States and Canada. UNFI
serves a wide variety of retail formats including conventional
supermarket chains, natural product superstores, independent retail
operators and the food service channel. UNFI was ranked by Forbes
Magazine in 2014 as one of “America’s Best Managed Companies.”
For more information on UNFI, visit the Company’s website at www.unfi.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding the Company's
business that are not historical facts, including statements related to
the Company’s estimated financial results, are "forward-looking
statements" that involve risks and uncertainties and are based on
current expectations and management estimates; actual results may differ
materially. The risks and uncertainties which could impact these
statements are described in the Company's filings under the Securities
Exchange Act of 1934, as amended, including its annual report on Form
10-K filed with the Securities and Exchange Commission (the "SEC")
on September 30, 2015, its quarterly reports on Form 10-Q filed with
the SEC on December 10, 2015, March 10, 2016 and June 9, 2016 and other
filings the Company makes with the SEC, and include, but are not limited
to, the ability of the Company to retain customers of businesses
acquired by the Company, including Gourmet Guru on terms similar to
those in place prior to our acquisition of these businesses; the
Company's dependence on principal customers; the Company's sensitivity
to general economic conditions, including the current economic
environment; changes in disposable income levels and consumer spending
trends; the Company's ability to reduce its expenses in amounts
sufficient to offset its increased focus on sales to conventional
supermarkets and the shift in the Company's product mix as a result of
its acquisition of Tony's Fine Foods and the resulting lower gross
margins on those sales; the Company's reliance on the continued growth
in sales of natural and organic foods and non-food products in
comparison to conventional products; increased competition in the
Company's industry as a result of increased distribution of natural,
organic and specialty products by conventional grocery distributors and
direct distribution of those products by large retailers; the Company's
ability to timely and successfully deploy its warehouse management
system throughout its distribution centers and its transportation
management system across the Company; the addition or loss of
significant customers; volatility in fuel costs; the Company's
sensitivity to inflationary and deflationary pressures; the relatively
low margins and economic sensitivity of the Company's business; the
potential for disruptions in the Company's supply chain by circumstances
beyond its control; the risk of interruption of supplies due to lack of
long-term contracts, severe weather, work stoppages or otherwise;
consumer demand for natural and organic products outpacing suppliers’
ability to produce those products; decreased supplier promotional
activity including decreased forward buying opportunities;
union-organizing activities that could cause labor relations
difficulties and increased costs; the ability to identify and
successfully complete acquisitions of other natural, organic and
specialty food and non-food products distributors; management's
allocation of capital and the timing of capital expenditures; and the
Company's ability to successfully deploy its operational initiatives to
achieve synergies from the acquisitions of Tony’s Fine Foods, Global
Organic, Nor-Cal, Haddon House and Gourmet Guru. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such, speak only as of the date made. The Company is
not undertaking to update any information in the foregoing reports or
any forward looking statements in this release until the effective date
of its future reports required by applicable laws. Any projections of
future results of operations are based on a number of assumptions, many
of which are outside the Company's control and should not be construed
in any manner as a guarantee that such results will in fact occur. These
projections are subject to change and could differ materially from final
reported results. The Company may from time to time update these
publicly announced projections, but it is not obligated to do so.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160811005420/en/
Source: United Natural Foods, Inc.
United Natural Foods, Inc.
Halie O’Shea
Director Investor
Relations & Corporate Strategy
(401) 528-8634
or
ICR
Katie
Turner
General Information
(646) 277-1228