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    UNFI, Millbrook Distribution Services to Merge

    DAYVILLE, Conn. -- Natural product wholesaler United Natural Foods, Inc. (UNFI) here and Leicester, Mass.-based full-line distributor Millbrook Distribution Services, Inc., a privately held subsidiary of Distribution Holdings, Inc., said Friday they have reached a definitive merger agreement in which UNFI Merger Sub, Inc., a wholly owned subsidiary of UNFI, will acquire all of the outstanding shares of Distribution Holdings.

    DAYVILLE, Conn. -- Natural product wholesaler United Natural Foods, Inc. (UNFI) here and Leicester, Mass.-based full-line distributor Millbrook Distribution Services, Inc., a privately held subsidiary of Distribution Holdings, Inc., said Friday they have reached a definitive merger agreement in which UNFI Merger Sub, Inc., a wholly owned subsidiary of UNFI, will acquire all of the outstanding shares of Distribution Holdings.

    The financial terms of the transaction were not revealed.

    The transaction was expected to close within the next 30 days, subject to customary closing conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

    "This pending transaction demonstrates our commitment to profitably grow the company while extending our competitive advantages and increasing shareholder value," said UNFI president and c.e.o. Michael Funk in a statement. "This combination will achieve our stated goal to increase the company's footprint in the specialty foods segment and will extend the breadth, scale, and capabilities of our distribution network."

    Millbrook has a considerable specialty food business in ethnic, kosher, gourmet, organic, and natural foods, as well as offering a broad assortment of HBC items, including a full line of national and branded products.

    With annual revenues of over $300 million, Millbrook distributes more than 22,000 specialty food items, and over 20,000 HBC and other nonfood products to more then 9,000 retail locations. Customers include independent store retailers, in addition to regional and national supermarkets, mass merchandisers, and chain drug stores, in 48 states.

    Millbrook's distribution network comprises four distribution centers, representing over 1.6 million square feet of warehouse space, in Harrison, Ark. (1.2 million square feet); Leicester, Mass. (188,000 square feet); East Brunswick, N.J. (177,600 square feet); and Tampa, Fla. (65,000 square feet).

    The company's president and c.e.o., Robert A. Sigel, will remain to direct its operations once the merger with UNFI is completed.

    UNFI carries and distributes over 40,000 products to more than 17,000 customers across the United States. The company serves a wide variety of retail formats, including conventional supermarket chains, natural product superstores, independent retail operators, and the foodservice channel.

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