ROSEMONT, Ill. — US Foods Holding Corp. and Performance Food Group have agreed to exchange confidential business information as the food distributors weigh a possible union.
In a September 16 statement, US Foods said it is pleased that Performance Food had decided to engage in the proposal US Foods floated last month to explore the regulatory considerations and synergies of a combination.
Performance Food was initially cool to the idea, but was apparently persuaded by investment firm Sachem Head to explore the tie-up and consider ways to improve margins, The Wall Street Journal reported.
Sachem also nominated four candidates for Performance Food’s board, including Sachem founder Scott Ferguson, a former US Foods director.
“There can be no assurance that this information sharing will result in any transaction proposal, or any assurance as to its outcome or timing,” US Foods said in announcing the information-sharing agreement with Richmond, Va.-based Performance Food, a supplier of packaged food to grocery stores and snacks, beverages and candy for vending machines and convenience stores.
Rosemont, Ill.-based US Foods said it provides customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions.
