HF Foods Group Inc. (NASDAQ: HFFG), a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States, announced today it has entered into a binding purchase agreement for a distribution facility located in Chicago, Illinois. HF Foods previously leased the facility following its acquisition of Great Wall Seafood in 2022.
This acquisition advances HF Foods’ ongoing transformation plan to improve operational efficiency, reduce facility costs and strengthen organic growth through cross-selling opportunities. Acquiring the facility enables HF Foods to exit the lease agreement early, improve operating expenses, and invest in the facility to grow additional capacity and drive consolidation opportunities. The Company believes its previously announced At-the-Market (ATM) equity offering program will provide financial flexibility to expedite investments such as the Chicago warehouse acquisition to drive further growth. The ATM program is expected to provide the Company additional liquidity for, among other items, working capital, capital expenditures, and possible acquisitions or business expansion.
“As we continue to successfully execute on our ongoing transformation plan, this acquisition represents another key milestone in better positioning HF Foods for future growth,” said Felix Lin, President and Chief Executive Officer of HF Foods. “This facility has been a key cornerstone of our Midwest distribution footprint, and over the next several years, we expect to further expand our presence in this important region. This acquisition is also well timed following the establishment of our ATM program. We believe the ATM program will provide additional financial flexibility to help us pursue similar acquisitions in the future to expand the business, enhance our capabilities and grow our national network.”
In addition, this acquisition deepens HF Foods’ commitment to the Chicago region and creates important opportunities that are expected to yield long-term benefits to HF Foods’ local restaurant customers in the Chicago and Midwest region by improving operational control, enhancing logistics, reducing facility costs and driving long-term margin growth.
