At a Glance

  • US Foods and Performance Food Group announced on Monday (Nov. 24) that they will no longer pursue a potential merger, with the related statement submitted to the U.S. Securities and Exchange Commission (SEC).
  • The two food distributors ended discussions after formally evaluating for several months, with the assessment covering synergies and regulatory matters.
  • PFG CEO George Holm said in a statement: "Our board unanimously concluded that the clearest and best path to long-term shareholder value is to execute our independent strategic plan, leveraging our diversified business segments to drive sustained revenue and profit growth." The statement was published on PFG's investor relations website.

In-Depth Analysis

US Foods CEO David Flitman said in early August that the Illinois-based company had initiated relevant procedures and had earlier explored merger possibilities with PFG. Flitman's company continues to maintain available investment capital, and its board has approved billions of dollars in stock buyback programs in recent years.

With merger talks terminated, US Foods' board also approved an additional $1 billion stock buyback program. Flitman said in a statement: "We have concluded that the best path to long-term value is to execute our long-term plan, including a rigorous capital allocation framework."

The two companies already hold significant shares in major markets. According to company data, US Foods has about 30,000 employees, while Virginia-based PFG has about 43,000 employees. In Transport Topics' 2024 list of the largest private transportation companies, both companies ranked second only to Sysco in terms of truck count.