Food Service Distribution Industry: M&As

Goals

To provide the most recent acquisitions of some of the biggest food service distributors in the US, including the money invested, the revenue of the acquired business, and the EBITDA multiple.

Early Findings

Performance Food Group

  • PFG acquired Reinhart Foodservice on December 30, 2019, for $2 billion.
  • In 2018, Reinhart Foodservice reported a net revenue of over $6 billion. As the company was a private entity, they did not report their profit or EBITDA margins.
  • However, according to CSIMarket, the average EBITDA margin for the food and beverage industry in the US was about 9.56%.
  • Assuming that Reinhart Foodservice has a similar EBITDA, it's profits after taxes amounted to $573.6 million, which means that the EBITDA multiple for the deal was roughly 3.5 times ($2 billion / $573.6 million).
  • PFG also acquired Eby Brown in May 2019 for an undisclosed amount.
  • Eby Brown reported north of $5.3 billion in revenue in 2018.

Proposed next steps:

You need to be the project owner to select a next step.