US Foods mulls potential acquisition of Performance Food Group, according to recent reports
In a significant move that could alter the landscape of the food distribution industry, US Foods has made a public takeover approach to Performance Food Group (PFG) in August 2025. The proposed merger, if it occurs, would create the largest US broadline food distributor with combined sales exceeding $100 billion, surpassing competitor Sysco [1][5].
However, PFG's board has rejected the offer, citing regulatory, synergy, and integration risks [2][4]. The potential benefits of the merger did not outweigh these associated risks, according to PFG.
The combination of US Foods and PFG would have far-reaching effects on the restaurant industry. A dominant combined distributor controlling nearly a fifth of the market could influence pricing, service levels, and product availability for restaurants nationwide. It could also intensify consolidation trends within the industry, pressuring smaller distributors and possibly affecting competitive dynamics [1][5].
From a regulatory standpoint, a merger of this magnitude would attract scrutiny given concerns about reduced competition in food distribution. Antitrust authorities would likely evaluate whether the combined entity’s market power might harm customers or suppliers, underscoring the complexities and hurdles to consummating such a deal [2][4].
US Foods has been on an acquisition spree over the past few years, buying IWC Foodservice in 2024 and Renzi Foodservice and Saladino's Foodservice in 2023. PFG, too, has grown rapidly over the past five years, largely through acquisitions [6]. If the acquisition goes through, US Foods and PFG would form the largest broadline distributor in the U.S. based on revenue data [7].
It's important to note that neither US Foods nor PFG has officially confirmed the acquisition. A report from Bloomberg suggests that US Foods is considering an acquisition of PFG [3]. The potential deal would likely face regulatory questions, given the potential impact on competition and market dynamics [4].
Despite the regulatory and operational risks, the potential merger has sparked excitement in the industry. Both US Foods and PFG stocks have performed well over the past year, with US Foods' market capitalization at $18.6 billion and PFG at $14.9 billion [2][6]. US Foods generated $37.9 billion in sales last year, while PFG generated $60 billion [2][6].
The restaurant industry and the broader food distribution landscape will be closely watching the developments between US Foods and PFG. The potential merger could reshape the industry, creating new opportunities and challenges for businesses and consumers alike.
[1] Bloomberg [2] The Wall Street Journal [3] Reuters [4] Food Dive [5] Nation's Restaurant News [6] Technomic [7] Sysco
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