Foodservice Distribution Industry Update — July 2019

 Yesterday PFG announced the acquisition of Reinhart Foodservice.  The $2 billion purchase price is the largest paid in the broadline segment, certainly in recent years.  The report link provides highlights of the transaction as well a few insights from Keiter Advisors.

If approved by the Federal Trade Commission, the new broadline network will have 63 distribution facilities located in 29 states.  Together with PFG’s recent acquisition of Eby-Brown, revenues for the combined divisions will be ($ in billions):

PFG (Foodservice / Customized / Vistar)                         $17.6
Reinhart                                                                                      $6.0
Eby- Brown                                                                                 $5.3
                                                                                                    $28.9

This transaction, coupled with the acquisition of SGA by US Foods last July, marks perhaps the most transformative time in broadline foodservice distribution. 

Source: Performance Food Group SEC filings: Annual 10-K filed 8-16-18, Form 8-K filed 7-1-19, Form 8-K filed 5-6-19

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