HF Foods Acquires Chicago Distribution Facility to Advance Transformation Strategy

HF Foods Group Inc. has entered into a binding purchase agreement for a distribution facility located in Chicago, Illinois, marking a significant step in the company's ongoing transformation strategy. The facility, which HF Foods previously leased following its acquisition of Great Wall Seafood in 2022, represents a strategic investment in the company's Midwest distribution footprint and operational efficiency.

The acquisition enables HF Foods to exit its existing lease agreement early while improving operating expenses and creating opportunities for facility expansion. This move is expected to drive consolidation opportunities and support the company's organic growth through enhanced cross-selling capabilities. The facility acquisition aligns with HF Foods' broader transformation plan focused on operational improvements and cost reduction while strengthening the company's position in key markets.

Felix Lin, President and Chief Executive Officer of HF Foods, emphasized the strategic importance of this acquisition, stating that it represents a key milestone in positioning the company for future growth. The Chicago facility has served as a cornerstone of the company's Midwest distribution operations, and this ownership transition is expected to facilitate further expansion in the region over the coming years.

The timing of this acquisition coincides with HF Foods' establishment of an At-the-Market equity offering program, which the company believes will provide additional financial flexibility to pursue similar strategic investments. The ATM program is designed to provide liquidity for working capital, capital expenditures, and potential acquisitions or business expansion initiatives. This financial strategy supports the company's ability to expedite investments like the Chicago warehouse acquisition to drive further growth.

For the Chicago and Midwest region, this acquisition deepens HF Foods' commitment to local restaurant customers by improving operational control and enhancing logistics capabilities. The company expects these improvements to yield long-term benefits through reduced facility costs and potential margin growth, ultimately supporting the restaurant businesses that rely on HF Foods' distribution services. The strategic move reinforces HF Foods' position as a leading distributor of international foodservice solutions to Asian restaurants and other foodservice customers across the United States.

HF Foods Group Inc. trades on Nasdaq under the symbol HFFG, and more information about the company can be found at https://www.hffoodsgroup.com. The company specializes in marketing and distributing fresh produce, frozen and dry food, and non-food products primarily to Asian restaurants, leveraging its nationwide network of distribution centers and strong supplier relationships to meet the growing demand for Asian American restaurant cuisine.