US Foods receives conditional approval to acquire SGA's Food Group
US Foods Holding announced that it has received conditional approval from the Federal Trade Commission to acquire SGA's Food Group of Companies for $1.8B in cash. The five operating companies being acquired are Food Services of America, Systems Services of America, Amerifresh, Ameristar Meats and GAMPAC Express/ US Foods expects to close the acquisition in the next few days. As a condition to receiving regulatory clearance from the FTC, US Foods will divest three FSA distribution facilities located in Kent, Wash.; Meridian, Idaho; and Fargo, N.D. US Foods plans to retain a portion of the business currently serviced from the Kent facility. Divestiture proceeds of approximately $90M will be used to reduce US Foods' debt. The combined annual Adjusted EBITDA of the facilities to be divested was approximately $21M for fiscal 2018. Definitive agreements for each of the divestitures have been entered into with each of the respective buyers, and we expect to close these transactions within 30 days following the completion of the SGA Food Group acquisition.