US Foods

exited

Industrial / Food Distribution — KKR / Clayton Dubilier & Rice

Deal Terms

Entry Year2007

Entry EV$7.1B

Entry Multiple8x

Leverage6x

Debt Amount$4.7B

Outcome

Exit Year2016

Risk Metrics

LTV (est.)66%

Debt / EV0.66x

Notes

KKR/CD&R $7.1B LBO (2007). $4.7B debt. Attempted merger with Sysco ($3.5B) blocked by FTC (2015). IPO'd 2016. $4.5B debt at IPO. PE owners profited but food distribution margins are razor-thin under PE debt loads. Workers faced cuts throughout PE ownership.

Sponsor

KKR & Co.$638B AUM

Hot Potato History

2000→Royal Ahold (parent)

2007→Clayton Dubilier & Rice + KKR($7.1B)

2016→Public (IPO)($7.1B)

Public. Sysco merger blocked by FTC (2015). CD&R/KKR exited through IPO at flat return. Nine years of PE ownership for modest gains.