trending Market Intelligence /marketintelligence/en/news-insights/trending/k1vbanmy7ggjoxjgeg34aw2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

US Foods to buy 5 operating companies from Services Group of America for $1.8B

Amazon e-commerce sales soar amid COVID-19

Gauging Supply Chain Risk In Volatile Times

S&P Global Market Intelligence

Cannabis: Hashing Out a Budding Industry

Segment

IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help


US Foods to buy 5 operating companies from Services Group of America for $1.8B

US Foods Holding Corp. announced July 30 that it has agreed to acquire five operating companies owned by Services Group of America for $1.8 billion in cash.

The five firms are Food Services of America Inc., a regional broadline distributor that services 16 states from nine distribution centers; Systems Services of America Inc., a distribution food service company specializing in casual and fast-casual dining establishments; Amerifresh Inc., a company focused on sourcing and marketing produce; Ameristar Meats Inc., a provider of custom meat products; and GAMPAC Express Inc., a company that does supply chain planning and logistics. Collectively, they are called Services Group of America's Food Group of Companies and total approximately 3,400 employees.

US Foods Chairman and CEO Pietro Satriano said the acquisition will help the Illinois-based distributor expand its reach across the U.S. Northwest region. The company also expects the transaction to be accretive to its adjusted EPS in the second full year after the deal closes.

US Foods will finance the deal with $1.5 billion in fully committed term loan financing from J.P. Morgan and Bank of America Merrill Lynch. It will then fund the balance of the purchase price through existing liquidity resources.

The transaction is subject to regulatory approval and other closing conditions.