HF Foods Group Inc. (NASDAQ: HFFG), leading food distributor to Asian restaurants across the Eastern U.S. announced this month, the completion of its merger with B&R Global Holdings, Inc. Under the terms of the merger agreement, HF Foods issued over 30 million shares of its common stock to B&R Global former shareholders. B&R Global (founded in 1999) supplies over 6,800 restaurants across 11 Western states. This merger will create, what is believed to be, the largest food distributor to Asian restaurants in the United States.
The combined entity will have 14 distribution centers strategically located in nine states across the East and West Coasts of the United States and a fleet of over 340 refrigerated vehicles. With 960 employees supported by two call centers in China, combined entity will serve over 10,000 restaurants in 21 states and provide round-the-clock sales and service support to its customers, who mainly converse in Mandarin or Chinese dialects.
Zhou Min Ni, chairman and Co-CEO of HF Foods said: “This combination brings together two complimentary market leaders dedicated to serving the vast array of Asian and Chinese restaurants in need of high-quality food ingredients. Our greater scale will allow us to better serve our respective customers with a wider range of products, to leverage the combined intellectual capital of our experienced management teams, and to benefit from economies of scale by removing duplicative operating costs, enhancing buying power, and creating a platform for further consolidation.”
Musick Peeler Partner Tim Chang and his team successfully represented B&R Global Holdings, Inc. in this $400 million merger between the two entities which also led to an invitation to attend the NASDAQ Opening Bell ceremony in NYC.