Performance Food Group to acquire Cheney Bros for $2.1B in cash

Performance Food Group announced that it has entered into a definitive agreement with Cheney Bros., an independent broadline foodservice distributor based in Riviera Beach, Florida and owned by the Cheney family and Clayton Dubilier & Rice, pursuant to which PFG will acquire Cheney Brothers for $2.1B in cash. The acquisition will create a stronger presence in the Southeast region and provide additional distribution capacity. Cheney Brothers generates approximately $3.2B in annual revenue. The acquisition is expected to generate approximately $50M of net annual run-rate cost synergies by the third full fiscal year after close. The purchase price represents an Adjusted EBITDA multiple of 9.9x, including $50M of run-rate synergies. The transaction is anticipated to be accretive to adjusted diluted EPS by the end of the first full fiscal year, including year one synergies. 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 transaction is not subject to PFG shareholder approval.