US Foods

$1.8 Billion Cash Deal: US Foods to Acquire SGA’s Food Group of Companies

By Food Safety Tech Staff
No Comments
US Foods

The agreement will expand the reach of US Foods across strategic markets in the Northwest.

This week US Foods Holding Corp announced a deal to acquire the five operating companies, SGA’s Food Group of Companies, for $1.8 billion in cash. SGA’s food companies are Food Services of America, Inc., Systems Services of America, Inc., Amerifresh, Inc., Ameristar Meats, Inc., and GAMPAC Express, Inc. Collectively these companies provide services that include food service for casual and fast casual dining, distribution, produce sourcing and marketing, custom meats, and supply chain planning and logistics.

“This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company,” said US Foods Chairman and CEO Pietro Satriano in a company release.

In addition to expanding US Foods’ footprint in the Northwest, the company will leverage the scale of SGA’s Food Group of Companies, which have nearly 33,000 customers, 12 distribution centers and more than 20 private brands. US Foods estimates it will achieve $55 million in annual run-rate cost synergies by the end of FY 2022 as a result of savings in administrative expenses, distribution and procurement.

Related Articles

About The Author

Food Safety Tech

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.