Performance Food Group (PFG) has secured a deal to acquire foodservice distributor Reinhart Foodservice from Reyes Holdings for $2 billion.
Headquartered in Illinois, Reinhart has annual net sales of more than $6 billion and is the “second largest privately held foodservice distributor in the US”, according to PFG.
PFG expects to achieve approximately $50 million in annual run-rate cost synergies in the third year following the close of the transaction. Synergies have been identified primarily in procurement, operations, and logistics.
The acquisition will enable PFG to expand its geographic reach and incorporate Reinhart’s customer base of independent restaurants as well as healthcare and education facilities.
“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,” said George Holm, PFG CEO.
“This transaction provides us with greater overall scale, a diverse customer base, including a solid base of independent customers, and builds upon our strong distribution platform.
“We believe these attributes along with attractive financial characteristics will enhance our ability to continue to deliver the service our customers need to succeed and create shareholder value.”
J Christopher Reyes, Reyes Holdings co-chairman, said: “We are excited to partner with PFG and believe this acquisition provides meaningful benefits to our customers and expanded opportunities for our employees.
“PFG has a solid track record of growth and leadership in our industry. We believe our strengths and the strong cultural connection our companies share will support continued success for many years to come.”
M Jude Reyes, Reyes Holdings co-chairman, added: “Reinhart Foodservice understands the important role our associates play in our success. We have proudly invested in our people and infrastructure to build our business, and we’re excited about this acquisition knowing that PFG supports a similar approach.”
With more than 80 US distribution centres, PFG markets and delivers food and related products to more than 150,000 locations, including independent and chain restaurants, schools, business and industry locations, healthcare facilities, vending distributors, office coffee service distributors, retailers, theatres and convenience stores.
© FoodBev Media Ltd 2019
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