PFG receives FTC inquiry related to Reinhart acquisition
Overcoming hurdle would position PFG for number 2 foodservice distributor spot
PFG announced October 1 that it received an inquiry from the Federal Trade Commission (FTC). The request is for additional information related to PFG’s proposed purchase of Reinhart Foodservice. In July, PFG signed an agreement to acquire Reinhart from Reyes Holdings in its bid to become the second-largest publicly-held U.S. foodservice distributor. With these new revenues, PFG would surpass US Foods, currently the number two distributor.
In addition, Reinhart generates $6B in annual net sales and is the second largest privately-held U.S. foodservice distributor. With Reinhart, PFG expands its geographic territory in addition to enhancing distribution for PFG’s customer base in select markets. Through the acquisition, valued at $1.7B net of tax benefit, PFG also projects it will gain $50M in annualized savings.
Also, the agreement to purchase Reinhart follows PFG’s acquisition of Eby-Brown, PFG’s latest acquisition is expected to receive approval after successfully addressing this FTC request of PFG based on the distributor’s latest announcement.
“PFG and Reinhart remain excited about the pending acquisition, and PFG will respond to the FTC requests as quickly as possible to support the review of the proposed transaction,” said a statement regarding the FTC request of PFG. Additionally, the distributor will close its purchase of Reinhart by 2019’s end or early 2020.
Photo credit: PFG
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