On Wednesday, Performance Food Group Company (NYSE: PFGC) said it would acquire privately held foodservice distributor Cheney Bros for $2.1 billion in cash, bolstering its presence in Southeastern U.S.
Florida-based Cheney, owned by the Cheney family and private equity firm Clayton Dubilier & Rice (CD&R), generates annual sales of more than $3 billion.
The move will help Performance Food expand into states, including Florida, Georgia, North Carolina, and South Carolina.
Shares of Performance Food (NYSE: PFGC), which reported net sales of $58.28 billion in its fiscal 2024, were up 3.6% in premarket trading.
The deal is expected to close in 2025, the company said. It is anticipated to add to adjusted earnings per share by the end of the first full fiscal year.
Larger food service distributors have been scouting for deals to beef up market share.
Performance Food, which supplies to restaurant chains, schools, and hospitals, agreed to buy peer Core-Mark Holding in a $2.5 billion deal including debt in 2021. In 2019, it acquired Reinhart Foodservice in a transaction valued at $2 billion.
Rival Sysco Corp (NYSE: SYY) had bid for US Foods in 2013 but called it off following regulatory hurdles.
J.P. Morgan is the financial adviser to Performance Food, while Morgan Stanley advised the Cheney Brothers.
(Source: ReutersReuters)
