US Foods is in talks to acquire its rival, according to a report. That would create the largest food distributor in the U.S.

A potentially monumental combination of two food distributors is apparently on the table.

US Foods, the third-largest distributor in the U.S., is apparently considering an acquisition of the second-largest distributor, Performance Food Group (PFG), according to a report Friday in Bloomberg.

That combination would create the largest broadline distributor in the country, at least based on revenue data and information from Restaurant Business sister company Technomic.

Stock in Performance Food Group was up 6% on Friday. Stock in US Foods was flat.

“We do not comment on rumors or market speculation,” a US Foods spokesperson said in an emailed statement. PFG did not respond to a request for comment.

A potential deal between the two distributors would likely face regulatory questions. But it would be a massive combination that would have ripple effects throughout the restaurant industry.

Sysco remains the largest broadline distributor in the U.S., having generated $64.6 billion in total sales last year. But PFG has grown rapidly over the past five years, largely through acquisitions, to overtake US Foods as the second largest distributor.

PFG generated $60 billion in sales last year, according to Technomic. US Foods generated $37.9 billion.

Each of the major distributors have made numerous acquisitions of smaller companies in recent years. PFG bought Cheney Brothers and Jose Santiago last year. Sysco acquired Jacmar last year and Edward Don and BIX Produce in 2023. US Foods bought IWC Foodservice in 2024 and Renzi Foodservice and Saladino’s Foodservice in 2023.

At the same time, regulators have in the past heavily scrutinized deals involving the biggest hardliners, worried about the potential impact of such dominance on the costs charged particularly to small chains and independents. A decade ago, Sysco canceled a planned merger with US Foods after the Federal Trade Commission blocked the merger and won an early ruling from a federal court judge.

Both PFG and US Foods stocks have performed well over the past year. And though PFG is the larger company, US Foods has the higher market value: Its market capitalization is $18.6 billion, while PFG’s is $14.9 billion.

Source https://www.restaurantbusinessonline.com/financing/us-foods-reportedly-considering-takeover-performance-food-group

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