FX.co ★ Performance Food Group To Acquire Cheney Brothers For $2.1 Bln Cash

Performance Food Group Co. (PFGC) announced on Wednesday its definitive agreement to acquire Cheney Bros., Inc. for $2.1 billion in cash. Cheney Bros., an independent broadline foodservice distributor based in Riviera Beach, Florida, is owned by the Cheney family and Clayton Dubilier & Rice.

This acquisition will enhance PFG's presence in the Southeast region and expand their distribution capacity. Cheney Bros. currently generates approximately $3.2 billion in annual revenue. Incorporating Cheney Bros.' distribution network in critical geographies will strengthen PFG's existing distribution platform and overall market density.

PFG expects to realize approximately $50 million in annual run-rate synergies by the third fiscal year post-closing.

The deal is projected to be accretive to PFG's Foodservice and overall company revenue growth rates, as well as adjusted EBITDA margins. Additionally, the acquisition is anticipated to positively impact adjusted EPS by the end of the first full fiscal year, including the initial year synergies.

The $2.1 billion purchase will be financed through borrowing on PFG's ABL facility and new Senior Unsecured Notes. This transaction, approved by PFG’s Board of Directors, is pending U.S. federal antitrust clearance and other standard closing conditions and is anticipated to close in the calendar year 2025. PFG shareholder approval is not required for this transaction.