PFG, US Foods begin information-sharing process toward possible combination

Performance Food Group (PFG) has entered into a clean team agreement with US Foods, allowing the companies to share information through independent advisors to evaluate potential regulatory hurdles and operational efficiencies tied to a possible business combination, the company announced.

The move follows discussions in recent weeks between members of the PFG board, management team and some of the company’s largest stockholders to explore a merger with US Foods. The clean team agreement signals that discussions with US Foods are advancing, though the company emphasized that there is no assurance a transaction will occur or when one might be proposed.

For convenience services operators, both companies play major roles in national food distribution. PFG, the parent of Vistar, serves more than 300,000 customer locations, including vending and office coffee service distributors. Any combination could reshape sourcing strategies, pricing leverage, and product availability across the industry.

PFG’s board and management, with guidance from J.P. Morgan, BofA Securities and legal counsel Skadden, Arps, will oversee the clean team process. US Foods and PFG said they will not comment further unless a definitive agreement is reached or discussions end.