Performance Food Group and US Foods terminate merger talks

Goochland County-based Fortune Global 500 company Performance Food Group and US Foods have scrapped discussions of a merger.

PFG announced Monday that it and US Foods have mutually agreed to terminate the previously announced information-sharing process and that the companies will no longer pursue a merger.

“Following a comprehensive evaluation of regulatory considerations and synergies related to a potential business combination with US Foods, with the assistance of our independent financial and legal advisors, we have decided to terminate discussions,” George Holm, chairman and CEO of PFG, said in a statement. “Our board of directors is unanimous in its belief that the clearest and best path to long-term stockholder values is executing our standalone strategic plan, leveraging our diverse business segments to drive consistent revenue and profit growth.”

Neither company immediately returned requests for comment Monday.

Had the two companies merged, it would have created the largest United States food service distributor, with roughly $100 billion in combined revenue.

In September, PFG said it entered “a clean team agreement” with US Foods, allowing the companies to share confidential information to determine potential synergies and whether the merger would face regulatory challenges.

PFG reported earlier this month that net sales for the first quarter of fiscal 2026 grew 10.8% year-over-year to $17.1 billion. The company expects net sales for the current quarter to be in the range of approximately $16.4 billion to $16.7 billion, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter to range from roughly $450 million to $470 million.

“The strength of our recently reported fiscal first quarter results and continued momentum supports the confidence in our ability to drive value for stockholders independently,” said Holm.

PFG is No. 80 on the 2025 Fortune 500 list and No. 272 on the Fortune Global 500. The company, which employs about 43,000 people, went public in 2015. PFG delivers food products to more than 300,000 locations in the United States and Canada, including restaurants, businesses, schools, theaters and retailers.

Headquartered in Illinois, US Foods Holding is ranked No. 122 on the Fortune 500 rankings for 2025 and No. 413 on the Fortune Global 500. It reported $37.8 billion in revenues in the last fiscal year and employs 30,000 people.