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, advancing the company's ongoing transformation plan to improve operational efficiency and reduce facility costs. The facility, which HF Foods previously leased following its acquisition of Great Wall Seafood in 2022, represents a strategic investment expected to strengthen organic growth through cross-selling opportunities and drive consolidation benefits across the company's distribution network.

This acquisition enables HF Foods to exit its lease agreement early, improve operating expenses, and invest in the facility to grow additional capacity. The company believes its previously announced At-the-Market equity offering program will provide financial flexibility to expedite investments such as the Chicago warehouse acquisition. The ATM program is expected to provide additional liquidity for working capital, capital expenditures, and possible acquisitions or business expansion, positioning the company for accelerated growth initiatives.

Felix Lin, President and Chief Executive Officer of HF Foods, emphasized the strategic importance of this development, stating that the facility has been a key cornerstone of the company's Midwest distribution footprint. The acquisition deepens HF Foods' commitment to the Chicago region and creates important opportunities expected to yield long-term benefits to local restaurant customers in the Chicago and Midwest region by improving operational control, enhancing logistics, and driving long-term margin growth.

The company's transformation plan focuses on improving operational efficiency while supporting the increasing demand for Asian American restaurant cuisine across the United States. By acquiring strategic distribution facilities like the Chicago location, HF Foods aims to strengthen its nationwide network of distribution centers and enhance its capabilities in serving Asian restaurants and other foodservice customers. For more information about the company's operations and strategic initiatives, visit https://www.hffoodsgroup.com.

This acquisition represents a significant step in HF Foods' broader strategy to optimize its distribution network and improve financial performance through strategic capital investments. The company expects to further expand its presence in the Midwest region over the next several years, leveraging the operational efficiencies gained from facility ownership to enhance service delivery and support continued growth in the competitive foodservice distribution market.