Russell Food Equipment acquires Hendrix Hotel & Restaurant Equipment and Supplies (Hendrix)

Transaction overview

Russell Food Equipment (RFE), a leading distributor of foodservice equipment and supplies based in Canada, acquired Hendrix Hotel & Restaurant Equipment and Supplies (Hendrix) in November 2016. The deal size was not disclosed, but Hendrix is considered RFE's largest competitor in the Canadian market. Post-acquisition, the combined entity operates as Russell Hendrix Foodservice Equipment (Russell Hendrix), expanding its national footprint and capabilities.

Deal structure and financing

Details of the equity and debt components used to finance the acquisition are not publicly disclosed. It remains unclear if any lead banks were involved or if RFE used existing cash reserves to complete the deal. The leverage metrics for Russell Hendrix post-acquisition are also undisclosed, but given the scale of the transaction, it is likely that RFE employed a mix of debt and equity financing to fund the acquisition. Additionally, there is no information on whether Hendrix's former owners retained any stake in the combined entity or if there were lock-up terms for key management personnel.

Strategic context

RFE acquired Hendrix to solidify its market leadership position in Canada by integrating a major competitor with complementary services and geographical reach. The acquisition enables Russell Hendrix to serve a broader customer base across various sectors, including restaurants, schools, healthcare facilities, hotels, and governmental entities. For Hendrix, the divestiture likely offered an opportunity for financial gain and strategic alignment within RFE’s expanding portfolio of foodservice equipment and supplies distribution.

Regulatory path

There is no publicly available information on whether regulatory bodies reviewed the transaction or if any remedies were required as a result. Given that Russell Hendrix operates across multiple provinces in Canada, it is probable that antitrust authorities in relevant jurisdictions such as the Competition Bureau of Canada would have been consulted during the deal's evaluation period. However, specific timelines and filings related to competition approval are not disclosed.