Performance Food Will Acquire Reinhart Foodservice In $2B Deal

Performance Food Group PFGC will acquire distributor Reinhart Foodservice LLC for $2 billion.

Performance Food also reaffirmed its fiscal 2019 adjusted earnings per share growth outlook to be in the range of 12% to 16% over its $1.54 reported in 2018.

The acquisition is expected to position Performance Food as one of the largest distributors in the U.S. with approximately $30 billion in net sales. The transaction is expected to generate approximately $50 million of annual run-rate cost synergies in three years after the close of the acquisition.

The transaction has been approved by the board of directors of Performance Food Group and the governing body of Reinhart and is subject to U.S. federal antitrust clearance.

“I’ve known the Reyes family for nearly two decades, and they have built and grown an incredible company,” said George Holm CEO of Performance Food. “We believe the addition of Reinhart and its complementary strengths will expand Performance Foodservice’s broadline presence, improve our network efficiency and help us achieve our long-term growth goals."

Performance Food Group shares traded lower by 0.92% at $39.66 in Monday's pre-market session.

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