FAIRMONT - US Foods of Rosemont, Ill., has reached a deal to acquire Iowa-based food service company Hawkeye Foods.
"The Hawkeye distribution center in Iowa City will serve as US Foods' first distribution center in the state and will enable us to better serve our customers throughout Iowa and expand our presence in this region," said Lisa Lecas, communications manager for US Foods.
Terms of the deal, expected to close in early August, were not disclosed.
Lecas stated the Fairmont facility will continue to operate without much change.
"We will be making investments in the Iowa facility, including improvements to the distribution center, adding new technology and providing employees with training and the tools to make their jobs easier," she said. "We will also continue to service customers out of Hawkeye's Fairmont location."
According to the business website Manta.com, Hawkeye Food Service in Fairmont is a distribution facility categorized under "wholesale grocers," and employs a staff from 50 to 99 workers.
Products distributed locally include: Quaker Foods and Beverages, California Food and Beverage, Quality Food and Beverage, and Chicago Food and Beverage.
As a consequence of the deal, there will be a closing of Hawkeye's Wright City, Mo., operation that will fold into the US Foods' St. Louis division, beginning in October. And Hawkeye's Danville, Ill., operations will be integrated into the US Foods distribution center in Streator, Ill., by November.
"US Foods is committed to treating all affected employees fairly by offering as many reassignments and transfer opportunities within the company as possible," Lecas said.