Performance Food Sees ‘No Basis’ to Engage With US Foods
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Performance Food Group Co.’s board determined there was “no basis” to engage with US Foods Holding Corp. after its rival requested that it share information for a potential merger, according to its CEO.
“Taking into consideration associated risks including regulatory, synergy and integration risks, after careful consideration, the PFG board determined that there was no basis to engage in the information sharing requested by US Foods,” Performance Food CEO George Holm said in a call with analysts Aug. 13 to discuss the company’s fiscal year results.
Performance Food ranks No. 4 and US Foods ranks No. 5 on theTransport Topics Top 100 list of the largest private carriersin North America. US Foods ranks No. 2 and Performance Food ranks No. 3 on thetop food service carriers list.
Last week, US Foods urged Performance Food to accept its invitation to explore a combination, following a Bloomberg News report of its interest. A representative for US Foods declined to comment beyond last week’s statement.
Performance Food has a strong balance sheet and its capital allocation plans include mergers and acquisitions, according to the company.
“We have some nice conversations, some that are actionable,” said Holm. “Nothing, in our history, that I would call significant in size. But it’s a great market today.”
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