US Foods acquires SGA Food Group for $1.8bn | Food acquisition news
US Foods acquisition of SGA Food Group : Illinois-based US Foods has wrapped up its previously announced $1.8 billion acquisition of rival foodservice distributor SGA’s Food Group of Companies (SGA Food Group) as per the latest food acquisition news.
As part of the all-cash deal, announced in July 2018, US Foods acquired five separate operating companies, which were collectively called SGA’s Food Group of Companies. The companies include Food Services of America (FSA), Systems Services of America (SSA), Amerifresh, Ameristar Meats, and GAMPAC Express.
Based in Scottsdale, Arizona, SGA’s Food Group of Companies had combined 2017 net sales of $3.2 billion and nearly 3,400 employees.
Food Services of America is a regional broadline food distribution company in the US that serves 16 states in the West and Midwest from nine distribution centers. Systems Services of America is a multi-unit distribution foodservice company that specializes in distributing to casual and fast-casual dining restaurants and regional and national QSR chains.
Amerifresh is a produce distribution company, while Ameristar Meats provides custom meat products, which includes 18 different beef programs as per customer specifications. GAMPAC Express is engaged in supply chain planning and logistics.
At the time of signing the deal, Pietro Satriano – US Foods Chairman and CEO, commenting on US Foods acquisition of SGA Food Group, said: “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.
“With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA’s Food Group of Companies is an ideal fit. The company’s unique merchandising programs, mature local sourcing capabilities and track record of operational excellence will be strong additions to our business.”
The closing of US Foods acquisition of SGA Food Group follows the conditional approval given by the US Federal Trade Commission (FTC) earlier this month. Under the condition imposed by the FTC, US Foods will sell three FSA food distribution facilities located in Kent, Seattle in Washington, Meridian, Boise in Idaho, and Fargo in North Dakota.
Pietro Satriano, on the finalizing of US Foods acquisition of SGA Food Group, said: “We are excited to finalize this transaction and enhance our overall scale and footprint in the attractive Northwest and West regions. Both companies share a strong commitment to innovation and customer service, which will enable us to bring US Foods’ industry leading product innovation and technology to SGA Food Group customers as well as to share SGA Food Group’s unique center of plate, produce and logistics capabilities with US Foods customers.”
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