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US Foods shares are up almost 20% since the start of this year
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Shares of Performance Food Group and US Foods Holding each rose to an intraday record on Friday as Bloomberg reported on a potential deal between the companies.
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The outlet reported that US Foods “has been evaluating an acquisition of Performance Food and expressed interest about a potential combination in recent months,” according to people familiar with the situation.
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The food-service companies generated nearly $100 billion in combined revenue in their most recent full fiscal years.
US Foods Holding (USFD) stock hit an all-time high Friday on a report that the firm was mulling an acquisition of Performance Food Group (PFGC), whose shares also jumped to a record high.
US Foods “has been evaluating an acquisition of Performance Food and expressed interest about a potential combination in recent months,” people familiar with the matter told Bloomberg. The report did not include details or a potential timeline for a deal, and noted that the talks are not guaranteed to lead to an acquisition.
If merged, the two companies would become the No. 1 U.S. food-service distributor with 18% of the $371 billion market, according to Bloomberg.
A US Foods spokesperson told Investopedia that the company does “not comment on rumors or market speculation.” Performance Food Group did not immediately respond to a request for comment.
US Foods generated $37.9 billion in sales last year, while Performance Food recorded $58.3 billion in its last full fiscal year, which ended in June 2024, for a total of $96.2 billion in combined revenue in the most recent full fiscal years for the food-service providers. However, US Foods has a market capitalization of around $18.6 billion, compared with Performance Food's $14.9 billion.
Performance Foods shares were up more than 5% in recent trading, and set an intraday record high of $95.92 earlier in the session. US Foods shares were little changed, having come off their own fresh all-time high of $81.63 set Friday morning.
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