PFG and US Foods abandon pursuit of merger

USFD +7.79% PFGC -2.34%

Performance Food Group (PFG) and US Foods have backed out of plans for a merger after assessing potential benefits and regulatory concerns.

The foodservice distributors have mutually decided to end an information-sharing process which commenced in September 2025.

US Foods CEO Dave Flitman stated: “We have completed our thorough analysis, including synergies and regulatory considerations, of the potential benefits of a combination with PFG.

“While we are pleased to have engaged in this exploratory process together, our board of directors and the executive leadership team have determined that it is in the best interest of US Foods and its shareholders to terminate discussions regarding a potential combination.”

PFG chairman and CEO George Holm stated: “Our board of directors is unanimous in its belief that the clearest and best path to long-term stockholder values is executing our standalone strategic plan, leveraging our diverse business segments to drive consistent revenue and profit growth.”

Headquartered in Rosemont in the US state of Illinois, US Foods serves 250,000 customer locations.

The company operates more than 70 broadline locations and more than 90 cash-and-carry stores, supported by around 30,000 associates.

PFG is based in Richmond, Virginia and operates more than 150 locations.

PFG and its companies supply food and related products to 300,000 clients, including restaurants, healthcare facilities, schools and retailers.

PFG reiterated the financial guidance it issued on 5 November 2025 for its 2026 financial year and for the second quarter of that year.

the company maintained net sales forecast of $16.4bn to $16.7bn for the second quarter of fiscal 2026, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) expected between $450m and $470m.

For the full 2026 financial year, PFG is maintaining its outlook for net sales of between $67.5bn and $68.5bn and adjusted EBITDA of $1.9bn to $2bn.

Its adjusted EBITDA forecast excludes items that management does not consider part of ongoing operations.

These may include losses on early debt extinguishment, restructuring‑related costs, certain tax items and fees tied to one‑off professional and legal services related to acquisitions.

US Foods, for its part, outlined capital allocation measures.

The company plans to enter an accelerated share repurchase agreement covering $250m of its common stock, under its existing share buyback authorisation.

Its board has also approved a new share repurchase programme, valued at $1bn.

"PFG and US Foods abandon pursuit of merger" was originally created and published by Verdict Food Service, a GlobalData owned brand.

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