Performance Food Group Company (PFG) has completed the acquisition of Cheney Bros., Inc., a prominent independent broadline foodservice distributor based in Riviera Beach, Florida. Cheney Bros. generates approximately $3.2 billion in annual revenue and has around 3,600 employees, operating five distribution centers in Florida and North Carolina.
PFG expects to achieve approximately $50 million of annual run-rate cost synergies in the third full fiscal year following the closing of the transaction. The company is enthusiastic about the compelling strategic and financial benefits of the acquisition, which include expanding geographic reach, complementary customer-centric operating models, compelling private brand opportunities, sizable synergy opportunities, compelling financial impact, and attractive valuation.
In light of this acquisition, PFG has adjusted its outlook for the full fiscal year 2025. The company now expects net sales to be in a range of approximately $62.5 billion to $63.5 billion, compared to the prior expectation of net sales in a range of approximately $60 billion to $61 billion. Additionally, PFG now anticipates adjusted EBITDA to be in a range of $1.7 billion to $1.8 billion, compared to the prior expectation of a range of $1.6 billion to $1.7 billion.
The purchase price for Cheney Bros. reflects a multiple of 13.0x to Cheney Bros.' unaudited trailing 12-month adjusted EBITDA. Including the expected $50 million of run rate synergies, the purchase price reflects a 9.9x multiple.
These changes in outlook and the acquisition's financial impact indicate significant growth and expansion for Performance Food Group Company. Following these announcements, the company's shares moved 2.7%, and are now trading at a price of $80.54. Check out the company's full 8-K submission here.
