Performance Food Group To Acquire Cheney Brothers For $2.1 Bln Cash

(RTTNews) - Performance Food Group Co. (PFGC) announced Wednesday that it has entered into a definitive agreement with Cheney Bros., Inc., pursuant to which PFG will acquire Cheney Brothers for $2.1 billion in cash.

Cheney Bros. is an independent broadline foodservice distributor based in Riviera Beach, Florida and owned by the Cheney family and Clayton Dubilier & Rice.

The acquisition will create a stronger presence in the Southeast region and provide additional distribution capacity. Cheney Brothers generates approximately $3.2 billion in annual revenue.

The addition of Cheney Brothers' distribution footprint in key geographies enhances PFG's existing distribution platform and overall density.

PFG expects to achieve approximately $50 million of annual run-rate synergies by the third full fiscal year following closing.

The transaction is expected to be accretive to PFG's Foodservice and total company top-line revenue growth rate and adjusted EBITDA margins. Furthermore, the transaction is anticipated to be accretive to adjusted EPS by the end of the first full fiscal year, including year 1 synergies.

The $2.1 billion purchase price is expected to be financed with borrowing on the company's ABL facility and new Senior Unsecured Notes.

The transaction, which has been approved by the Board of Directors of PFG, is subject to U.S. federal antitrust clearance and other customary closing conditions and is expected to close in calendar 2025. The transaction is not subject to PFG shareholder approval.