(May 7) RICHMOND, Va. — Progressive Group Alliance, a national food distribution net-work and operating unit of Per-formance Food Group, Rich-mond, Va., reached an agreement to purchase Plee-Zing Inc., a Glenview, Ill.-based distributor.
The terms of the transaction were not announced, but the deal will add about 160 distributor locations to the Progressive Group Alliance, bringing the total for Progressive to almost 1,000 locations and combined sales of more than $20 billion.
Plee-Zing distributes a variety of products, including frozen foods and some fruits and vege-tables, under the Plee-Zing and Lil’ Brave labels.
No staff changes are expected as part of the deal, and William Stickney, whose grandfather founded Plee-Zing 75 years ago, will remain as chairman of the board of directors and will help with the company through the first half of 2005.
Don Donakowski, Plee-Zing’s president, is expected to remain in that role as well. The Glenview office is expected to remain open for the next several months.
Neither company returned calls for this story, but Steve Push, president of distributor development for Progressive, said in a news release that the acquisi-tion is part of a long-term strat-egy for growth that was imple-mented by his company in 1999.
“With the addition of Plee-Zing, we believe we will continue to add strength to our procure-ment programs as well as help drive down headquarter costs by spreading relatively fixed costs over a larger base of business,” he said. “Additionally, with this larger base of distributors, we anticipate that our business services unit will be able to ex-tend its reach to help more dis-tributors create new profit dollars and to capitalize on cost savings.”