Performance Food Group Company Acquires Foodservice Distributor, Cheney Bros, Inc.
Richmond, VA — October 9, 2024 — Performance Food Group Company (PFG) recently announced the successful acquisition of Cheney Brothers, Inc., a prominent foodservice distributor based in Riviera Beach, Florida. This acquisition strengthens PFG’s position in the Southeast, adding to its distribution network and providing additional capacity for future growth. Cheney Brothers, with an annual revenue of $3.2 billion, operates five distribution centers in Florida and North Carolina and employs approximately 3,600 people.
“We are excited to close the acquisition and welcome Cheney’s many talented associates to the PFG family of companies,” said George Holm, PFG Chairman & CEO in a recent press release. “Cheney has built a strong business and this transaction expands PFG’s platform and geographic reach to help our diverse customer base thrive. I would like to personally thank Byron Russell, Cheney Brothers’ CEO, for his excellent stewardship for over 40 years. Under his leadership, Cheney Brothers has grown into one of the most successful privately held foodservice distributors in the United States. I look forward to creating shared success in the future.”
The acquisition provides strategic and financial benefits for PFG.
- Expanded Footprint: The acquisition enhances PFG’s distribution in key Southeastern markets, including five state-of-the-art facilities which provides further room for growth.
- Customer-Dedicated Synergies: Both companies share a customer-first approach, serving a broad range of foodservice operators, including independent restaurants, chain restaurants, hotels, and other foodservice operators.
- Growth Opportunities: PFG plans to leverage its private brand portfolio to increase sales to Cheney Brothers’ independent restaurant customers.
- Financial Impact: PFG expects $50 million in annual cost synergies by the third fiscal year post-acquisition, primarily in procurement and logistics.
Refreshment operators will gain enhanced access to a wider range of products, improved distribution efficiencies, and expanded service offerings, ensuring a more streamlined supply chain to support their growing needs.
PFG anticipates fiscal year 2025 net sales of $62.5 billion to $63.5 billion, including contributions from Cheney Brothers. Previously, the expected net sales had a range of approximately $60 billion to $61 billion. Adjusted EBITDA is expected to be between $1.7 billion and $1.8 billion, compared to the prior expectation of a $1.6 billion to $1.7 billion range.
About Performance Food Group Company (PFG)
Performance Food Group is a leading foodservice distribution company in North America, operating in over 150 locations. Based in Richmond, Virginia, PFG supplies quality food and products to more than 300,000 customers, including restaurants, schools, healthcare facilities, vending operators, retailers, and more. With around 37,000 dedicated employees, PFG’s success as a Fortune 100 company is built on strong relationships with its customers, suppliers, and communities. For more information on PFG, visit pfgc.com.
