US Foods, Performance Food enter information sharing agreement over possible deal (updated)

US Foods Holding

16/09/2025 12:19

Adds context in paragraph 3, 4

Sept 16 (Reuters) - Performance Food Group PFGC.N said on Tuesday it has agreed to share confidential information with peer US Foods Holding USFD.N, as the two companies explore a potential deal.

Shares of Performance Food (PFG) were up about 3% in premarket trading.

Reuters reported last month that hedge fund Sachem Head has been pushing PFG to explore ways to improve its profitability and would like the company to consider a merger with US Foods.

Sachem also nominated four directors to the food distributor's board, Reuters had reported, citing sources.

"The PFG Board, along with its independent financial and legal advisors, concluded that there was sufficient basis to begin information sharing," Performance Food said in a statement on Tuesday.

The company, which serves ingredients and packaged food products to restaurants and retailers, attracted takeover interest from US Foods in July, Bloomberg had reported.

US Foods later confirmed that it had approached its rival about a possible combination.

US Foods, which is valued at roughly $18 billion, said on Tuesday it was "pleased with PFG's decision" to engage.

However, PFG said the latest agreement between the two companies does not mean it will result in any transaction proposal, or any assurance as to its outcome or timing.

PFG has a market capitalization of $16.3 billion, according to data compiled by LSEG.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shreya Biswas)

 ((AnujaBharat.Mistry@thomsonreuters.com;))