Two major U.S. foodservice distributors are considering a merger.
Rosemont, Illinois, U.S.A.-based US Foods said in a release that it and Richmond, Virginia, U.S.A.-based Performance Food Group will exchange confidential information based on a potential merger.
“US Foods is pleased with PFG’s decision to engage in an effort to explore the regulatory considerations and synergies of a potential combination,” US Foods said in the release. “There can be no assurance that this information sharing will result in any transaction proposal or any assurance as to its outcome or timing.”
PFG said members of its board and management team have engaged with large stockholders of the company to hear their perspectives and that it will continue engaging with them as the process goes forward.
“Following these conversations, the PFG Board, along with its independent financial and legal advisors, concluded that there was sufficient basis to begin information sharing,” PFG said.
The combination of the two major distributors “has the potential to create significant value for both companies and our collective stakeholders while enhancing competition in the foodservice industry,” US Foods CEO David Flitman said during the company’s second quarter earnings call, Restaurant Business reported.
"
Customers of the combined company would benefit from a broader product offering and enhanced ability to compete in the marketplace, as well as increased efficiencies, Flitman added.
US Foods recently reaffirmed its guidance for FY 2025, with net sales growth of between 4 percent and 6 percent, adjusted EBITDA growth of between 9.5 percent and 12 percent, and adjusted diluted earnings per share growth of between 19.5 percent and 23 percent.
“Our team continues to drive steady progress on our self-help initiatives as we delivered strong results through the first half of 2025, including growing adjusted EBITDA approximately 11 percent and adjusted EPS 27 percent,” Flitman said. “This performance underscores the consistent execution of our strategy and positions us well for sustained profitable growth for many years to come.”
The company said its long-term plan for the years spanning 2025 and 2027 is also on track, which is targeting a 10 percent adjusted EBITDA compound annual growth rate and “at least 20 basis points of annual adjusted EBITDA margin expansion.”
PFG recently filed its Q4 and FY fiscal 2025 results in August, indicating its net sales in FY 2025 increased 8.6 percent to USD 63.3 billion (EUR 53.7 billion) and its adjusted EBITDA increased 17.3 percent to USD 1.8 billion (EUR 1.5 billion).
“Our organization finished fiscal 2025 with strong financial results driven by contributions from each of our three operating segments,” PFG CEO George Holm said. “I am proud of the accomplishments of our 43,000 employees, particularly our sales associates, who continue to drive share gains across our business segments. We enter fiscal 2026 with a stable industry backdrop and significant business momentum, and we are on track to achieve the three-year financial targets we announced in May.”
