Private Equity Firms Reportedly Bid to Acquire U.S. Foodservice
COLUMBIA, Md. -- Private equity firms Clayton, Dubilier & Rice (CD&R) and Kohlberg Kravis Roberts & Co. (KKR) have made a preliminary bid to buy Ahold division U.S. Foodservice unit, according to a published report that cited an unnamed source.
Following an exhaustive review of its retail operations, Ahold recently placed the scandal-plagued, financially troubled unit on the market.
Reuters reported that the source told it Clayton, Dubilier & Rice (CD&R), which in 2001 sold Alliant (a business now part of U.S. Foodservice) to Ahold, is heading up the takeover bid and values the business at approximately $5 billion. The source added that the CD&R/KKK bid could result in a deal during the first quarter of 2007.
CD&R and KKR have declined to comment, but speculation that KKR was gearing up to bid for all of Ahold was shot down late last week by a source familiar with the matter.
Another source earlier informed Reuters that Cerberus Capital Management, yet another private equity firm, was also considering buying U.S. Foodservice.
Following an exhaustive review of its retail operations, Ahold recently placed the scandal-plagued, financially troubled unit on the market.
Reuters reported that the source told it Clayton, Dubilier & Rice (CD&R), which in 2001 sold Alliant (a business now part of U.S. Foodservice) to Ahold, is heading up the takeover bid and values the business at approximately $5 billion. The source added that the CD&R/KKK bid could result in a deal during the first quarter of 2007.
CD&R and KKR have declined to comment, but speculation that KKR was gearing up to bid for all of Ahold was shot down late last week by a source familiar with the matter.
Another source earlier informed Reuters that Cerberus Capital Management, yet another private equity firm, was also considering buying U.S. Foodservice.