Performance Food Group Plans IPO

RICHMOND, VA -- Performance Food Group Co., parent company of vending distribution giant Vistar, commenced its initial public offering of 14.5 million shares of its common stock on Sept. 21.

PFG, the nation's third-largest foodservice distributor, said it plans to sell 14.5 million shares of stock at a price between $22 and $25 a share, according to a filing with the Securities and Exchange Commission.

The selling stockholders, including affiliates of Blackstone Group LP, a private-equity firm, and Wellspring Capital Management, also have granted underwriters a 30-day option to purchase up to 2.175 million additional shares at the IPO price, bringing the total number of shares to 16.675 million.

The IPO will occur on a date "as soon as practicable" after the SEC approves the company's registration documents.

The company said its common stock has been approved for listing on the New York Stock Exchange under the "PFGC" symbol.

The offering follows the termination of a proposed merger of US Foods and Sysco on June 29, after the U.S. District Court in Washington, DC, granted the Federal Trade Commission request for a preliminary injunction to block it. That move terminated an agreement with PFG to purchase US Foods facilities in 11 markets.

Under terms of the merger agreement, the termination of the transaction required Sysco to pay breakup fees of $300 million to US Foods and $12.5 million to PFG.

PFG generated $15.27 billion in revenue during its recent fiscal year, ended June 27.

The company markets and distributes about 150,000 products from 68 distribution centers, and employs 12,000 people. Its three divisions -- Performance Foodservice, Vistar and PFG Customized-- deliver goods to vending and office coffee service operators, chain restaurants, schools, business and industry locations, hospitals, big box retailers and theaters.

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Sysco Terminates Merger With U.S. Foods