PFG finalizes purchase of Reinhart Foodservice from Reyes
Both buyer, seller boast around $30B in annual revenues after transaction
Performance Food Group (PFG) completed its purchase of Reinhart Foodservice from Reyes Holding LLC. With this acquisition, PFG has been estimated to surpass US Foods as the second-largest foodservice distributor in the U.S. PFG now tallies $30B in annual net revenue and employs 25,000 associates.
PFG has expanded its reach in geography and markets with the Reinhart acquisition, it noted. Additionally, Reinhart Foodservice has a similar customer-centric approach as PFG, a company announcement said. Furthermore, the diversity of Reinhart’s customer portfolio and its proprietary food brands bolsters those of PFG.
Within the Procurement, Operations and Logistics groups, PFG touts a synergy that will help it produce significant savings. It estimates about $50M in total run-rate annual savings. It also expects to invest $90M in upgrades and integration within Internet & technology systems. PFG will make these capital expenditures over the next five years.
“The Reyes family has built a strong business and this transaction expands PFG’s platform to help our diverse customer base thrive,” said George Holm, PFG chairman, president and chief executive. “We are honored to add Reinhart’s proud history to PFG and look forward to creating shared success in the future.”
In a separate announcement from the seller, Reyes Holdings Founder and Co-Chairman Jude Reyes, said, “We are excited to focus forward in 2020 as we continue to grow Reyes Holdings, both organically and through acquisitions.” Reyes reported that after the PFG sale, it will remain with more than $30B in annual revenues across its subsidiaries, including in beer and bottling companies.
Photo credit: Performance Food Group
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