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Food Distributors End Merger Talks
27 Nov
Summary
- US Foods and Performance Food Group have ceased merger discussions.
- Both companies cited executing their standalone strategic plans.
- US Foods approved a new $1 billion share repurchase program.
US Foods and Performance Food Group have definitively halted discussions about a potential merger, ending months of speculation. Both companies issued statements on Monday confirming the cessation of talks, which had involved detailed analysis of synergies and regulatory considerations.
The leadership of both organizations expressed a unified belief that pursuing independent strategic plans offers the clearest route to sustained long-term value for shareholders. Performance Food Group CEO George Holm emphasized leveraging diverse business segments for consistent growth, while US Foods CEO David Flitman highlighted disciplined capital allocation.
With the merger talks concluded, US Foods has authorized a new $1 billion share repurchase program, signaling confidence in its standalone future. This decision comes as both companies are established major players in the food distribution market, employing tens of thousands of workers and ranking among the largest carriers.
