Private equity firms to purchase Performance Foods

by Eric Schroeder
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RICHMOND, VA. — Private equity firm Blackstone Group and Wellspring Capital Management have agreed to acquire Performance Food Group, a marketer and distributor or more than 68,000 national and private label food-related products, in a transaction valued at $1.3 billion.

As part of the agreement, Performance Food Group shareholders will received $34.50 in cash for each outstanding share of common stock they hold, representing a premium of about 33% over the average closing share price for the 30 trading days ended Jan. 17.

Once acquired, Performance Food Group will be combined with Vistar Corp., a food service distributor that is controlled by affiliates of Blackstone and Wellspring. Vistar specializes in the Italian, pizza, vending, office coffee and theater markets. The company serves more than 33,000 customers in 50 states through 36 distribution centers.

The transaction is expected to close by the end of the second quarter of 2008, the companies said.

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