New business breaks off from R.A.B.
March 15, 2007
by FoodBusinessNews.net Staff
NEW YORK — Distribution Holdings Inc. — a subsidiary of R.A.B. Holdings Inc. and parent of Millbrook Distribution Services Inc. — was established as a separate company from R.A.B. on Feb. 22.
In addition to Distribution Holdings becoming a separate company, Millbrook also entered a $45 million credit facility with a group of financial institutions that are led by JPMorgan Chase.
"The spin-off will permit the management of Millbrook and R.A.B. Food Group to better focus on their respective businesses," said Richard A. Bernstein, chairman and chief executive officer for R.A.B. "It will also dispel any confusion in the marketplace between our branded and the distribution businesses that will each be run as independent and stand alone companies."
Millbrook also is expanding its business through a partnership with Albertson’s. The company will supply specialty, natural and ethnic foods to the supermarket chain.
"We are very excited about expanding our supply relationship with Albertson’s L.L.C. as it establishes a stronger presence for us in its Texas, Florida, Arizona and Colorado divisions," said Robert A. Sigel, president and chief executive offer of Millbrook.
Mr. Sigel said Millbrook already supplies Albertson’s with products such as cosmetics, hair care, candles, hosiery, party supplies and small appliances. The distribution centers in Harrison, Ark., and Tampa, Fla., will work to support the new business to Albertson’s.
Distribution Holdings works through Millbrook to supply specialty foods, health and beauty care products, and other merchandise to supermarkets and retailers across the United States. R.A.B. Holdings works through its R.A.B. Food Group subsidiary to manufacture processed kosher food products.