Another chapter in the Chicago food industry closed. Local meat supplier, Allen Brothers, was bought by Chef’s Warehouse, Inc., a Connecticut-based food conglomerate, after a 120 year run of family ownership.
Chicago'sAllen Brothers bought for $20 million
December 11, 2013|By Ameet Sachdev | Tribune reporter
Allen Brothers, a family-run South Side institution that supplies steaks and other high-end meats and seafood to some of the nation’s finest restaurants, has been sold to a Connecticut-based food supply company.
Chefs' Warehouse Inc. said Wednesday that it acquired Allen Brothers for $20 million, plus $9.9 million in debt and future payouts to be made for hitting certain performance goals.
The sale comes a little more than a year after Allen Brothers Chairman Robert “Bobby” Hatoff was found dead outside the company’s headquarters on South Halsted Street. His death was ruled a suicide by the Cook County medical examiner’s office.
Hatoff was the third-generation of the family to run the business. His son, Todd, had followed in his footsteps and is president of the company.
Allen Brothers supplies nearly 400 restaurants, hotels, casinos and country clubs. Consumers can also buy its USDA Prime Beef directly from the company’s web site. The company is expected to have $80 to $85 million in revenues this year, according to a news release issued by Chef’s Warehouse.
“We are thrilled to join The Chefs' Warehouse team,” Todd Hatoff said in a statement. “We believe this is a great opportunity for our dedicated staff, our loyal customers, and our trusted vendors, who have all contributed to building Allen Brothers' long history. Having a partner like Chefs' Warehouse will only enhance our opportunities to continue building our brand, as well as provide a terrific future for our employees and customers.”
A Chefs’ Warehouse spokeswoman said Allen Brothers’ management team, including Todd Hatoff, will be retained.
Chefs’ Warehouse is a publicly traded distributor of specialty food products, from cheeses to caviar. The vast majority of its customers are independent restaurants and fine-dining establishments on the East and West coasts, according to securities filings. Until the purchase of Allen Brothers, the company had little presence in the Midwest outside of Ohio.
The company, which had revenues of $480.3 million in 2012, has been growing through acquisition. The company said in securities that its debt of $125 million is “substantial.”
Chefs’ Warehouse financed the Allen Brothers’ acquisition with cash it raised from a stock offering it completed in September. The company said in a statement that it plans to sell more products direct to consumers through the online-sales platform that Allen Brothers built.
