Performance Food Group Company (PFG) has revealed that it signed a conclusive agreement to acquire Eby-Brown Company (Eby-Brown), a U.S. distributor of pre-packaged candy, snacks, specialty beverages, and tobacco products in the convenience industry.
“We are excited about Eby-Brown joining the PFG family of companies and adding their customer-centric approach to ours,” said PFG President and CEO George Holm. “Their impressive levels of order fulfillment, on-time delivery, and ability to adapt to customer needs have helped build their reputation as a premier provider of convenience industry solutions for independent operators and larger retail chains. This acquisition will provide a new, complementary growth opportunity for PFG with incremental revenue synergies in our foodservice platform.”
According to a press release, this acquisition will allow PFG’s Vistar segment to strategically expand in the fast-growing convenience store channel where there is significant overlap with suppliers and product categories, as well as opportunities to use PFG brands for unique solutions in the prepared/made-to-order foodservice market. Vistar and Eby-Brown together will service over 75,000 locations.
Founded more than 125 years ago, Eby-Brown is a privately held company. Led by Dick and Tom Wake and headquartered in Naperville, IL, it operates eight distribution facilities in Georgia, Kentucky, Illinois, Indiana, Michigan, Ohio, Pennsylvania, and Wisconsin that serve 20 states. As stated in the company’s press release, Eby-Brown had fiscal 2018 revenues of $5.3 billion. The company said the transaction is expected to be neutral to slightly accretive to PFG’s Adjusted Earnings Per Share (EPS) in fiscal 2020.
“George and his management team understand and share our values and belief in forming lasting relationships with customers and business partners,” said Tom Wake, Co-President of Eby-Brown.
Eby-Brown’s other Co-President, Dick Wake, added, “We believe this acquisition will better position us to serve existing and new customers, and we’re excited about the innovative possibilities that we will be able to provide to our customers, as a part of PFG.”
The companies anticipate the transaction to reach an outcome in the second quarter of calendar 2019 and is subject to regulatory approval.
For more updates on the distributing companies and other acquisitions, keep reading Deli Market News.