PFG receives approval from FTC to finalize Reinhart purchase
Transaction should close by December 31, 2019
Performance Food Group (PFG) received approval from the Federal Trade Commission (FTC) to acquire Reinhart Foodservice. Disclosed in October, the FTC submitted a request for additional information from PFG in connection with its review of the deal. Now that the acquisition can move forward, PFG expects the transaction to be completed by year’s end. Still, the companies have additional, customary closing conditions to satisfy or have waived as part of PFG’s Reinhart Foodservice purchase.
With Reinhart’s revenues, and barring no other sizable acquisitions by US Foods this year, PFG would surpass US Foods, currently the number two distributor. Currently, Reinhart generates $6B in annual net sales and is the second-largest privately-held U.S. foodservice distributor. Through the Reinhart purchase, PFG expands its geographic territory in addition to enhancing distribution to PFG’s customer base in select markets.
“This transaction builds upon our strong distribution platform and will provide us with greater overall scale and a diverse customer base, including independent customers,” said George Holm, PFG chairman, president & chief executive. “We expect this transaction to enhance our ability to help our customers thrive and believe the attractive financial characteristics will create long-term shareholder value.”
Photo credit: Performance Food Group
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