Performance Food Group Company (PFG) announced that it has entered into a definitive agreement with Cheney Bros., Inc., a leading independent broadline foodservice distributor based in Riviera Beach, Florida and owned by the Cheney family and Clayton Dubilier & Rice. PFG will acquire Cheney Brothers for $2.1 billion in cash. The acquisition will create a stronger presence for PFG in the Southeast region and additional distribution capacity. Cheney Brothers generates approximately $3.2 billion in annual revenue.
The addition of Cheney Brothers’ distribution footprint in key geographies enhances PFG’s existing distribution platform and overall density. With the transaction, PFG will add an additional five broadline distribution facilities with excess capacity for further growth across four Southeastern states.
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.
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 and are expected to be achieved within the first three full fiscal years.
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.
