Performance Food To Buy Reinhart Foodservice In $2.0 Bln Deal - Quick Facts

(RTTNews) - Performance Food Group Co. (PFGC) agreed Monday to acquire Reinhart Foodservice, L.L.C from Reyes Holdings, L.L.C. in a transaction valued at $2.0 billion, or about $1.7 billion, net of an estimated tax benefit to PFG of about $265 million.

With annual net sales of over $6 billion, Reinhart is the second largest privately held foodservice distributor in the U.S.

The deal will expand the geographic reach and overall scale Performance Food's distribution footprint. It will also boost attractive customer base and product offerings.

The $2.0 billion purchase price is expected to be financed with borrowing on the company's Asset-based Revolving Credit Facility, new Senior Unsecured Notes and Equity proceeds, subject to market conditions, of $300 million to $400 million. Affiliates of Credit Suisse and Wells Fargo provided committed financing for the acquisition.

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

Additionally, Performance Food reaffirmed its fiscal 2019 adjusted earnings per share growth outlook to be in a range of 12 to 16 percent over its $1.542 reported in fiscal 2018.