Summary

The second-largest food services distribution company in the nation, USFD hopes to raise nearly $1 billion in its IPO, set for 5.26.2016.

US Foods is hoping to use the proceeds from its IPO to pay towards its debts and to raise its credit profile.

A strong underwriting team is led by Goldman Sachs, J.P. Morgan, and Morgan Stanley; and includes BofA, Credit Suisse, Deutsche Bank, and others.

We suggest investors consider taking a bite.

US Foods Holding Corp. (Pending:USFD) (ticker symbol pending) hopes to raise $950 million through its upcoming IPO, or up to $1,095 million if the additional shares are purchased in full by the underwriters. Based in Rosemont, Illinois, US Foods Holding Corp. is the second-largest food services distributor in the U.S.

From its SEC Filings, US Foods Holding Corp. plans to make an ticker symbol pending of its class B common stock. The company also plans to offer an additional 6.66 million shares of class B common stock that its underwriters will have the option to purchase in full if they wish. The expected price range is $21 to $24. If the midpoint of the range is reached, the company should raise $999 million through its IPO.

Business Summary

US Foods Holding Corp. has a national footprint in the U.S. and is just one of two food services distributors in the country that do. The company had net profits of $23 billion for the most recent fiscal year, which ended on Jan. 2, 2016. The company distributes its products to more than 250,000 customers across the country, including individual and multiple location restaurants, national chains, colleges, retail locations, hospitals, hotels and motels, nursing homes and others. The company has a network of 62 distribution centers and a fleet of around 6,000 delivery trucks per its filings.

Executive Management Overview

The president and CEO of US Foods Holding Corp. is Pietro Satriano, who was named to the role in July 2015. He joined US Foods in 2011 and previously served as the company’s Chief Merchandising Officer. Prior to that, Mr. Satriano served as the president of LoyaltyOne Canada, the company that owns AirMiles, the largest consumer rewards program in that country. Mr. Satriano earned his Masters of Business Administration at Harvard University.