Tricon Global Restaurants, Inc. (NYSE:YUM) said it is very pleased that McLane Company, Inc., a subsidiary of Wal-Mart Stores, Inc., has finalized its purchase of the U.S. distribution business of AmeriServe, providing Tricon with an outstanding distributor going forward.
The sale was approved by the U.S. Bankruptcy Court on November 28, 2000, in connection with the Court’s approval of AmeriServe’s Joint Liquidating Plan of Reorganization. Under the terms of the sale, McLane has assumed distribution to domestic restaurants in the Tricon system that previously had been serviced by AmeriServe.
McLane Compay provides distribution services to multiple industries throughout the United States. A wholly owned subsidiary of Wal-Mart Stores, Inc., since 1990, McLane delivers food and non-food products to convenience stores, mass merchandisers, and QSR’s. The company will provide distribution services to company-owned and franchisee-owned quick services restaurants, including Taco Bell, KFC, Long John Silver’s, and Pizza Hut. The AmeriServe business, with sales of more than $3.4 billion, will now operate as McLane Foodservice, Inc. , a wholly-owned subsidiary of McLane Company, and will be based in Carrollton, Texas.
“McLane is a financially solid, world-class distributor with a proven track record of outstanding service, and is a great fit for our system,” said David Novak, Chief Executive Officer of Tricon Global Restaurants. “McLane’s purchase of AmeriServe has been our preferred solution since early in the bankruptcy process. Our Operations, Finance and Legal teams did an excellent job managing this situation, resulting in minimal service disruptions to our restaurants. I am pleased this issue is behind us and I’m confident McLane’s superior distribution capability will help us run great restaurants,” Novak said.
Tricon is the world’s largest restaurant company in terms of system restaurants, with more than 30,000 restaurants in over 100 countries and territories. Tricon’s three brands, KFC, Pizza Hut and Taco Bell, are the global leaders of the chicken, pizza and Mexican restaurant categories, respectively. Total worldwide system sales were nearly $22 billion in 1999.
