Performance Food Group, food product distributor and marketer, has acquired the Thoms-Proestler Company, a privately-owned, broadline foodservice distributor based in Rock Island, Illinois.
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The transaction is valued at about US$95m, which represents the consideration for the acquisition of Thoms-Proestler’s outstanding voting and non-voting securities as well as the assumption of certain liabilities, and has been structured to provide for tax-deductible goodwill.
About US$80m was paid in cash and the assumption of liabilities, while around 500,000 Performance Food common shares were issued for the balance. In addition, the purchase price may be increased by up to US$7m if Thoms-Proestler achieves certain operating targets over the next two years.
Thoms-Proestler serves customers throughout the states of Illinois, Iowa, Indiana and Wisconsin, including Chicago, from a 255,000ft² distribution centre. It generated sales of about US$230m in 2001. Performance Food generated sales of US$3.2bn in 2001.
C. Michael Gray, Performance Food’s president and CEO, remarked, “The addition of Thoms-Proestler significantly expands our broadline coverage into the contiguous Midwest market. The company is a well-managed and innovative broadliner.
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By GlobalData“We expect a nominal contribution to earnings per share for the balance of 2002 with an incremental contribution of US$0.03 to US$0.04 per share in 2003.”
Tom Thoms, CEO of Thoms-Proestler, remarked: “Joining Performance Food is a tremendous opportunity for our company, associates and customers. [It] also provides us with the financial support to further expand our business and increase our market position.”
