Performance Food Group Company Announces Agreement to Acquire Cheney Bros; George Holm and Byron Russell Comment

A certain transaction in the foodservice sector recently caught our eye. We learned that Performance Food Group Company (PFG) has entered a definitive agreement to acquire Cheney Brothers for $2.1 billion in cash, bolstering the companies’ presence in the Southeast.

“Cheney Brothers will be an outstanding addition to our Foodservice segment, and we are excited to welcome their many talented associates to the PFG family of companies,” said George Holm, PFG Chairman and Chief Executive Officer. “This acquisition will expand and enhance our offerings to a high-quality and diverse customer base. 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.”

As the companies noted in a recent release, this move spurs a host of compelling strategic and financial benefits for the operation. This includes:

• Expanded Geographic Reach: With the transaction, PFG will add an additional five state-of-the-art broadline distribution facilities with excess capacity for additional growth across four Southeastern states
• Complementary Customer-Centric Operating Models: Cheney Brothers provides food and foodservice to a diverse range of customers including independent restaurants, restaurant chains, hotels, country clubs, institutional groups, and other foodservice operators
• Compelling Private Brand Opportunity: Cheney Brothers has a high mix of sales to independent restaurants but a low mix of private brand penetration to independent restaurants; PFG has a meaningful opportunity to expand the sale of private brands to Cheney Brothers independent restaurant customers by leveraging PFG’s broad portfolio of private brands
• Sizable Synergy Opportunities: 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
• Compelling Financial Impact: The transaction is expected to be accretive to PFG’s Foodservice and total company top-line revenue growth rate and adjusted EBITDA margins

The transaction, which has been approved by the Board of Directors of PFG, is subject to U.S. federal antitrust clearance and other customary closing conditions and is expected to close in calendar 2025, the release stated.

“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. “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.”

Read more about the transaction here.

Deli Market News has more updates coming your way, so stay tuned.