US Foods has agreed a deal to acquire Services Group of America’s (SGA) Food Group of Companies for $1.8 billion in cash, as the company seeks to expand its presence in the foodservice sector.
SGA’s Food Group includes five companies which predominantly serve clients in the foodservice sector, such as Food Services of America, one of the largest food distribution companies in the US.
Other companies included in the deal are Systems Services of America, Amerifresh, Ameristar Meats and GAMPAC Express.
According to US Foods, the five organisations had combined 2017 net sales of $3.2 billion and have approximately 3,400 employees.
US Foods says that the acquisition will significantly enhance its operations, as it will acquire SGA’s Food Group’s approximately 33,000 customers, 12 US distribution centres and over 20 private brands.
US Foods chairman and CEO Pietro Satriano said: “This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing Northwest region of the US and adds one of the most well-regarded regional distributors to our company.
“With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA’s Food Group of Companies is an ideal fit.
“The company’s unique merchandising programs, mature local sourcing capabilities and track record of operational excellence will be strong additions to our business.
“We look forward to welcoming the talented teams at SGA’s Food Group of Companies to US Foods, providing customers with even better service and expanded capabilities, and delivering accelerated growth and value to our shareholders.”
Services Group of America executive vice-president and COO Slade Stewart added: “For the past 46 years, we have had the vision to become a leading national foodservice company.
“This is an exciting milestone on our journey and provides more success and growth opportunities for our customers and our Associates.”
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