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Kira Jenkins //March 19, 2019//
Kira Jenkins //March 19, 2019//
Richmond-based Performance Food Group has signed an agreement to acquire Eby-Brown Company LLC, a Naperville, Ill.-based distributor of prepackaged candy, snacks, specialty beverages and tobacco products.
This acquisition will allow PFG’s Vistar segment to expand in the fast-growing convenience store channel, the company said in a news release. Vistar and Eby-Brown combined will serve more than 75,000 locations. Vistar would be No. 1 in locations served and No. 2 in overall non-tobacco convenience volume.
Eby-Brown is a privately held company founded more than 125 years ago. It operates distribution facilities in Georgia, Kentucky, Illinois, Indiana, Michigan, Ohio, Pennsylvania and Wisconsin serveng 20 states.
Eby-Brown had fiscal 2018 revenues of $5.3 billion, which included $1 billion of tobacco excise taxes. The transaction is expected to be neutral to slightly accretive to PFG’s adjusted earnings per share in fiscal 2020.
Subject to regulatory approval, the companies expect the transaction to close in the second quarter of this year.
