U.S. Foodservice OKs Kohlberg-RSMD deal

Maryland Watch

September 01, 1998

Columbia-based U.S. Foodservice and Kohlberg & Company LLC agreed yesterday to transfer the business and related assets of Rykoff-Sexton Manufacturing Division to a newly formed Kohlberg subsidiary.

RSMD, which had merged with U.S. Foodservice, reached a long-term supply agreement with Kohlberg. Los Angeles-based RSMD manufactures more than 1,400 food and nonfood products. It currently has annual sales of more than $115 million.

By outsourcing its manufacturing plant, U.S. Foodservice is looking to narrow the breadth of its services.

"The deal divests us from manufacturing, which is not our core business," said Bonna Walker, the company's vice president of marketing. "It helps us concentrate more on furthering our efforts as wholesale distributors of food products and related services."

U.S. Foodservice markets and distributes more than 40,000 national, private label and signature brand items to over 130,000 customers, including restaurants, hotels, health care facilities, cafeterias and schools, and employs more than 12,000 people.

Pub Date: 9/01/98

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