Richmond, Va.-based Performance Food Group Co. will acquire Rosemont, Ill.-based Reinhart Foodservice LLC from Reyes Holdings LLC in a $2 billion transaction.
The deal combines the third largest (PFG) and fifth largest (Reinhart) U.S. foodservice distributors, according to data from Technomic.
“We are excited to announce the strategic acquisition of Reinhart and welcome them to Performance Food Group,” George Holm, PFG chairman, president and CEO, said in a news release.
“We believe the addition of Reinhart and its complementary strengths will expand Performance Foodservice’s broadline presence.”
With 26 distribution centers, Reinhart has annual net sales of more than $6 billion. PFG, with more than 80 distribution centers and well over $20 billion in sales, also focuses on foodservice.
“We are excited to partner with PFG and believe this acquisition provides meaningful benefits to our customers and expanded opportunities for our employees,” J. Christopher Reyes, Reyes Holdings co-chairman, said in the release.
“PFG has a solid track record of growth and leadership in our industry. We believe our strengths and the strong cultural connection our companies share will support continued success for many years to come.”
The $2 billion purchase price is expected to be financed with borrowing on PFG’s asset-based revolving credit facility, new senior unsecured notes and equity proceeds, according to the release.
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 conditions.
The deal is expected to be closed by the end of the year, according to the release.