US Foods Holding (USFD), whose stocks reached a historic high last Friday, is allegedly contemplating the acquisition of Performance Food Group (PFGC). The latter's shares also soared to a record high, following the rumors. According to individuals affiliated with the matter, US Foods has been looking into a possible acquisition of Performance Food over the past few months. However, details of a possible deal, including its timeline, remain unclear and it's been pointed out that the discussions may not necessarily result in an acquisition.
If the merger happens, the resulting company would become the leader in the US food-service distributing sector with an 18% share of the $371 billion market. However, both US Foods and Performance Food Group have remained silent on the issue, declining to comment on what they described as 'rumors or market speculation'.
In terms of financial performance, US Foods recorded $37.9 billion from sales last year, while Performance Food declared $58.3 billion for the fiscal year ending in June 2024. This indicates a combined revenue of $96.2 billion for the most recent fiscal years for both companies. In terms of market capitalization, US Foods stands at around $18.6 billion, while Performance Food is approximately $14.9 billion.
Evidence of these whispers of a possible merger could be seen in the companies’ stock performance, with shares of Performance Foods climbing over 5% in recent trading and reaching an intraday record high of $95.92. Meanwhile, US Foods shares also recorded a new all-time high of $81.63 on Friday, although their value had cooled slightly since then.