Performance Food Group Co. (PFG), Richmond, Va., announced plans to acquire Reinhart Foodservice, LLC, Rosemont, Ill., from Reyes Holdings, LLC, Rosemont, Ill., for $2 billion.
“We are excited to announce the strategic acquisition of Reinhart and welcome them to Performance Food Group,” says George Holm, chairman, president and CEO of PFG. “I’ve known the Reyes family for nearly two decades, and they have built and grown an incredible company. 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. 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."
“We are excited to partner with PFG, and believe this acquisition provides meaningful benefits to our customers and expanded opportunities for our employees,” says J. Christopher Reyes, co-chairman of Reyes Holdings. “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.”
“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,” says M. Jude Reyes, co-chairman of Reyes Holdings.
This acquisition achieves the following:
Expands geographic reach and overall scale. The addition of Reinhart’s distribution footprint in key geographies enhances PFG’s existing distribution platform and market density.
Complementary customer-centric operating models. Consistent go-to-market approaches and selling cultures are focused on customer success.
Enhances attractive customer base and product offerings. Reinhart has a diverse customer base that includes independent restaurants, healthcare, education and other segments. The combined portfolio of proprietary brands broadens PFG’s offering.
Significant synergy opportunities. PFG expects to achieve approximately $50 million in annual run-rate cost synergies in the third year following the close of the transaction. Cost synergies have been identified primarily in procurement, operations and logistics.
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