Performance Food Group (Nasdaq/NM:PFGC) yesterday announced that it has completed the acquisition of privately owned Redi-Cut Foods, Inc. (“Redi-Cut”), one of the nation’s largest independent fresh-cut produce processors with facilities in Chicago and Kansas City. As previously announced, the total consideration for the acquisition was $133 million, including cash and common stock of Performance Food Group. The transaction will be accounted for as a purchase and structured to allow for tax-deductible goodwill related to the acquisition.
Redi-Cut, based near Chicago, is a leading processor of fresh-cut produce to the nation’s leading quick-service restaurants and other sectors of the “food-away-from-home” industry. The company, which is expected to report net sales of approximately $130 million for 2000, operates two modern processing facilities, including a recently completed 53,000 square foot plant in Kansas City. With a history of product innovation, quality and service, Redi-Cut has created one of the leading pre-cut commercial reputations in the produce industry and built a leading market presence in the Midwest where it currently serves 95% of the region’s quick-service restaurants.
Robert C. Sledd, Chairman and Chief Executive Officer of Performance Food Group, remarked, “We are very pleased that we were able to complete the acquisition of Redi-Cut. This portion of our business offers exciting growth opportunities, and our past success encourages us about the prospects for building nationwide leadership in this rapidly expanding part of the foodservice industry. Adding the Redi-Cut operations and management team will significantly broaden our existing fresh-cut produce resources, and we look forward to this outstanding management team joining our company.”
Performance Food Group markets and distributes more than 25,000 national and private label food and food-related products to approximately 27,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visit www.pfgc.com.
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on current expectations and management’s estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to, the relatively low margins and economic sensitivity of the foodservice business, thee Company’s reliance on major customers, the ability to identify and successfully complete acquisitions of other foodservice distributors and management of the Company’s planned growth, all as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission.
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