Food distributor Performance Food Group Co. said Friday it has agreed to be acquired by an affiliate of private equity firm Blackstone Group and Wellspring Capital Management in a deal valued at $1.3 billion.
Under terms of the agreement, Performance Food Group shareholders will receive $34.50 in cash for each outstanding share of common stock they hold, a premium of about 43 percent over Thursday's closing price of $24.19.
Performance Food Group will be combined with Vistar Corp., a foodservice distributor that is controlled by affiliates of Blackstone and Wellspring. Performance Food Group's board has unanimously approved the deal and plans to recommend the deal to shareholders.
Blackstone and Wellspring will be required to pay a $40 million termination fee if the deal is not completed. Performance Food Group said it will also solicit superior offers from third parties during the next 50 days.
The deal is expected to close by the end of the second quarter of 2008, pending shareholder and regulatory approval.
Performance Food Group markets and distributes more than 68,000 food and food-related products to more than 41,000 hotels, cafeterias, schools, healthcare facilities and restaurants, including Cracker Barrel, TGI Friday's, Outback Steakhouse and Ruby Tuesday. The company serves customers in all 50 states and in 41 countries.