Performance Food Group Co. has inked an agreement to acquire Cheney Bros. Inc., an independent broad-line food service distributor in Riviera Beach, Fla., for $2.1 billion in cash.
According to PFG, the acquisition will allow the company to create a stronger presence in the Southeast region and provide additional distribution capacity. Cheney Brothers, which is owned by the Cheney family and Clayton Dubilier & Rice (CD&R), generates approximately $3.2 billion in annual revenue.
“Cheney Brothers will be an outstanding addition to our food service segment, and we are excited to welcome their many talented associates to the PFG family of companies,” said George Holm, PFG Chairman and CEO in a release. “We have long admired the success of Cheney Brothers in the Southeastern U.S. and believe that the combination of our organizations will push the business to new heights. We are excited for what the future holds for the newest addition to PFG.”
With the transaction, PFG will add five broad-line distribution facilities to its network with excess capacity for further growth across Florida, Georgia, North Carolina and South Carolina. PFG expects to achieve approximately $50 million of annual run-rate synergies by the third full fiscal year following closing. Identified cost synergies are primarily in the areas of procurement, operations and logistics.
“On behalf of the 3,600 Cheney Brothers associates, allow me to express our excitement at the prospect of being part of PFG’s organization,” said Byron Russell, Cheney Brothers’ CEO in a release. “I have watched PFG grow into one of the country’s largest foodservice distributors by fostering new business relationships and maintaining a strong company culture. I believe this transaction will bring together two winning organizations and create a significant platform for growth. Together, the companies will build upon each other’s strengths and achieve outstanding success in the years ahead.”
The transaction has been approved by the PFG board of directors and is subject to U.S. federal antitrust clearance and other customary closing conditions. It is expected to close in 2025.
