News

Performance Food Group to acquire Reinhart Foodservice for $2 billion

July 1, 2019

Performance Food Group Co. announced it will buy Reinhart Foodservice LLC, the second-largest privately held food distributor in the U.S., for $2 billion in an effort to scale to counter rising transportation costs, according to Reuters, via a Yahoo Finance report.

"We need all the people, so it's a good situation... Drivers would be the biggest difficulty, hence our need for all the drivers," Performance Food's Chief Executive Officer George Holm told Reuters.

The acquisition will create a company with $30 billion in net sales and add independent restaurants to Performance Food's existing food product supply customer base that includes Subway, Restaurant Brands International Inc.'s Burger King and Bloomin' Brands Inc.

The acquisition will give Performance exposure to the U.S. Midwest, especially the Louisiana region, where Reinhart operates two distribution centers.

Performance Food may cut some corporate level jobs as a result of the acquisition, but it will retain all distribution center employees, Holm said.

The transaction is expected to generate $50 million in savings annually by the third year following completion, which is expected by the end of this year.

Performance Food shares rose as much as 3.4% on Monday.