Richmond, Va., May 27 - Performance Food Group Company announced today that the previously announced acquisition of the Company by affiliates of The Blackstone Group and Wellspring Capital Management has been completed. The transaction is valued at approximately $1.4 billion.
Performance Food Group is being merged with a wholly owned subsidiary of VISTAR Corporation, a leading specialty foodservice distributor controlled by affiliates of Blackstone and Wellspring. The newly combined company, known as Performance Food Group, is expected to have revenues approaching $10 billion and more than 10,000 associates. Under the terms of the merger agreement, Performance Food Group shareholders will receive $34.50 in cash for each outstanding share of PFG common stock held as of 4:00 P.M (EDT) on May 23, 2008. As a result of the merger, Performance Food Group Company’s common stock was delisted and ceased trading on the NASDAQ Global Select Market as of such time.
George Holm, president and chief executive officer of VISTAR, will assume the role of chief executive officer for Performance Food Group. Mr. Holm has been an executive in the foodservice distribution industry for 28 years, and prior to joining VISTAR held senior leadership roles with Alliant Foodservice Inc., U.S. Foodservice, Inc., and SYSCO Corporation.
Mr. Holm noted, “With our newly combined business strengths, dedicated associates, loyal customers, and top-quality suppliers, I am really excited about the opportunities Performance Food Group has for continued growth and success within the industry.”
“We are very pleased to be able to combine two leading companies in the foodservice distribution industry,” said Prakash Melwani, a senior managing director at Blackstone. “The companies are highly complementary in terms of distribution networks, customer focus and product offerings and are ideally positioned for continued strong growth going forward. Blackstone’s significant investment in PFG reflects our high degree of confidence in management and the strategic merits of this combination.”
William F. Dawson, Jr., a partner at Wellspring, added, “We are excited to be increasing our commitment to the foodservice distribution industry through this transaction. The combined company represents a dynamic, growing foodservice platform with substantial breadth and diversity across a broad range of customers, products and channels. We have a best-in-class management team which is ready to capitalize on the many opportunities created by this merger.”