When it's time to eat out, Performance Food Group (PFG) delivers. It's the #3 broadline foodservice distributor in the US (behind SYSCO and U.S. Foodservice). Through its Foodservice division, PFG supplies more than 68,000 products to independent restaurants, hotels, other hospitality operators, and healthcare facilities through some 20 distribution facilities. The PFG Customized distribution unit serves chain restaurants such as Cracker Barrel and Ruby Tuesday. PFG subsidiary Vistar is a distributor of candy, snacks, and convenience foods for vending operators, retailers, and concessions. The company is owned by The Blackstone Group and Wellspring Capital Management, which took the business private in 2008.
With the $1.3 billion buyout in 2008 PFG was merged with Colorado-based Vistar (which was already controlled by Blackstone) to create a giant in the foodservice distribution industry with tentacles reaching into several markets. The combined business continues to operate under the PFG name, although each unit maintains its own headquarters. Across the company's foodservice, Vistar, and customized distribution businesses PFG collectively delivers more than 98,000 national- and proprietary-branded food and food-related products to more than 128,000 customers. As part of its operations, PFG maintains about 70 distribution centers and more than a dozen Merchant's Mart locations in the US.
For PFG's broadline Performance Foodservice division, the focus has been on building the range of products it distributes to existing customers while improving margins. The division's more than 41,000 customers, located in about 40 countries, include franchisees of such chains as Burger King, Popeyes (owned by AFC Enterprises), and Subway. It also serves contract foodservice operators, such as Compass Group North America.
Mergers and Acquisitions
The company moved to expand its broadline division in mid-2012 by acquiring Carolina-based rival Institution Food House from Alex Lee. It also entered into an agreement in late 2012 to buy independent broadline foodservice distributor Fox River Foods, which serves seven states primarily in the Upper Midwestern region. The deals followed PFG's purchase in 2010 of Ledyard Company, which serves central and northern California. To add breadth to its product offering at its New England and Ohio offices, PFG in 2010 bought out the assets of VME Distributors. The wholesale supplier catered to mobile caterers, office coffee services, schools, prisons, and vending operators that do business in New York, Pennsylvania, and Ohio.