Performance Food Group to acquire Eby-Brown Company, terms not disclosed
Performance Food Group Company announced that it has signed a definitive agreement to acquire Eby-Brown Company, a U.S. distributor of pre-packaged candy, snacks, specialty beverages and tobacco products in the convenience industry. This acquisition will allow PFG's Vistar segment to strategically expand in the fast-growing convenience store channel where there is significant overlap with suppliers and product categories, as well as opportunities to use PFG brands for unique solutions in the prepared/made-to-order foodservice market. Vistar and Eby-Brown combined will service over 75,000 locations and Vistar would be No. 1 in locations served and No. 2 in overall non-tobacco convenience volume. Eby-Brown is a privately held company founded more than 125 years ago. Headquartered in Naperville, Ill., the company is led today by Dick and Tom Wake, and operates eight distribution facilities in Georgia, Kentucky, Illinois, Indiana, Michigan, Ohio, Pennsylvania and Wisconsin that serve 20 states. Eby-Brown had fiscal 2018 revenues of $5.3B, which included $1B of tobacco excise taxes. The transaction is expected to be neutral to slightly accretive to PFG's Adjusted Earnings Per Share in fiscal 2020. Subject to regulatory approval, the companies expect the transaction to close in the second quarter of calendar 2019.