Performance Food Group, US Foods end merger talks

Performance Food Group and US Foods person ended talks that would person created the largest home foodservice institution and 1 of the nation’s largest backstage fleets.

Both companies run much than 6,000 tractors. A operation would person created the biggest nutrient distributor successful the U.S. with implicit $100 cardinal successful yearly nett sales. Richmond, Virginia-based Performance Food Group (NYSE: PFGC) has astir 155 organisation centers and Rosemont, Illinois-based US Foods (NYSE: USFD) has implicit 70.

The combined marketplace capitalization would person been northbound of $30 billion, rivaling the largest nutrient distributor, Houston-based Sysco’s (NYSE: SYY), which has a $36 cardinal marketplace cap.

Sysco generates $81 successful nett income annually done its 337 organisation centers successful 10 countries. It has a fleet of implicit 19,000 transportation vehicles.

“Our Board of Directors is unanimous successful its content that the clearest and champion way to semipermanent stockholder values is executing our standalone strategical plan, leveraging our divers concern segments to thrust accordant gross and nett growth,” said PFG Chairman and CEO George Holm successful a quality release. “The spot of our precocious reported fiscal archetypal 4th results and continued momentum supports the assurance successful our quality to thrust worth for stockholders independently.”

PFG reaffirmed its full-year fiscal 2026 guidance of $67.5 cardinal to $68.5 cardinal successful nett income and adjusted EBITDA successful a scope of $1.9 cardinal to $2.0 billion.

US Foods archetypal approached PFG astir a woody successful July. Activist capitalist Sachem Head Capital Management pushed PFG to research a merger with US Foods successful aboriginal September. The 2 backstage carriers announced an information-sharing statement 2 weeks later.

“We person completed our thorough analysis, including synergies and regulatory considerations, of the imaginable benefits of a operation with PFG. While we are pleased to person engaged successful this exploratory process together, our Board of Directors and the Executive Leadership Team person determined that it is successful the champion involvement of US Foods and its shareholders to terminate discussions regarding a imaginable combination,” said US Foods CEO Dave Flitman.

US Foods reiterated its fiscal 2025 outlook and a longer-range program that calls for 5% nett income maturation annually, with adjusted EBITDA maturation of 10%. It besides announced a caller $1 cardinal stock repurchase statement successful summation to a $250 cardinal accelerated stock repurchase plan.

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The station Performance Food Group, US Foods extremity merger talks appeared archetypal connected FreightWaves.