US Foods Secures SGA's Food Group

US Foods Holding Corp. is in the process of acquiring SGA's Food Group of Cos for $1.8 billion cash.

Usfoods

Reuters reports that US Foods Holding Corp. is in the process of acquiring SGA's Food Group of Cos for $1.8 billion. The acquisition is an attempt to expand into the northwestern part of the United States. 

SGA's Food collected net sales of $3.2 billion from its five operating units in 2017 and has 12 distribution centers. The sale will have US Foods reaching about $55 million in annual run-rate cost savings by the end of 2022, Reuters reports. 

According to Reuters, the deal will be primarily funded through a term loan of $1.5 billion from J.P. Morgan and Bank of America Merrill Lynch. 


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