PFG To Acquire Eby-Brown Company; Reaffirms 2019 Outlook - Quick Facts

(RTTNews) - Performance Food Group Company (PFGC) announced it has signed a definitive agreement to acquire Eby-Brown Company LLC, a U.S. distributor of pre-packaged candy, snacks, specialty beverages and tobacco products in the convenience industry. The acquisition will allow PFG's Vistar segment to strategically expand in the fast-growing convenience store channel. Vistar and Eby-Brown combined will service over 75,000 locations.

Headquartered in Naperville, Ill., Eby-Brown is led by Dick and Tom Wake, and operates eight distribution facilities in Georgia, Kentucky, Illinois, Indiana, Michigan, Ohio, Pennsylvania and Wisconsin that serve 20 states. Eby-Brown had fiscal 2018 revenues of $5.3 billion. The transaction is expected to be neutral to slightly accretive to PFG's adjusted earnings per share in fiscal 2020.

For fiscal 2019, PFG reaffirmed its adjusted EBITDA growth to be in a range of 7% to 10% over fiscal 2018 adjusted EBITDA of $426.7 million. The company also reaffirmed fiscal 2019 adjusted EPS to grow in a range of 10% to 16% over fiscal 2018. The company noted that the announced transaction is not included in the fiscal 2019 outlook.