US Meals could also be attempting to make a giant transfer to purchase PFG. | Photograph courtesy of US Meals.
A doubtlessly monumental mixture of two meals distributors is outwardly on the desk.
US Meals, the third-largest distributor within the U.S., is outwardly contemplating an acquisition of the second-largest distributor, Efficiency Meals Group (PFG), in keeping with a report Friday in Bloomberg.
That mixture would create the biggest broadline distributor within the nation, not less than primarily based on income information and data from Restaurant Enterprise sister firm Technomic.
Inventory in Efficiency Meals Group was up 6% on Friday. Inventory in US Meals was flat.
“We don’t touch upon rumors or market hypothesis,” a US Meals spokesperson stated in an emailed assertion. PFG didn’t reply to a request for remark.
A possible deal between the 2 distributors would probably face regulatory questions. However it might be a large mixture that may have ripple results all through the restaurant trade.
Sysco stays the biggest broadline distributor within the U.S., having generated $64.6 billion in whole gross sales final yr. However PFG has grown quickly over the previous 5 years, largely by means of acquisitions, to overhaul US Meals because the second largest distributor.
PFG generated $60 billion in gross sales final yr, in keeping with Technomic. US Meals generated $37.9 billion.
Every of the most important distributors have made quite a few acquisitions of smaller firms lately. PFG purchased Cheney Brothers and Jose Santiago final yr. Sysco acquired Jacmar final yr and Edward Don and BIX Produce in 2023. US Meals purchased IWC Foodservice in 2024 and Renzi Foodservice and Saladino’s Foodservice in 2023.
On the similar time, regulators have previously closely scrutinized offers involving the most important hardliners, fearful in regards to the potential affect of such dominance on the prices charged notably to small chains and independents. A decade in the past, Sysco canceled a deliberate merger with US Meals after the Federal Commerce Fee blocked the merger and received an early ruling from a federal courtroom decide.
Each PFG and US Meals shares have carried out nicely over the previous yr. And although PFG is the bigger firm, US Meals has the upper market worth: Its market capitalization is $18.6 billion, whereas PFG’s is $14.9 billion.
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