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HomeFoodUS Foods will acquire SGA's Food Group of Companies. 2018-07-30

US Foods will acquire SGA’s Food Group of Companies. 2018-07-30

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Rosemont, IL. US Foods Holding Corp. has entered into a definitive agreement to acquire SGA’s Food Group of Companies for $1.8 billion in cash.

Based in Scottsdale, Ariz., SGA’s Food Group of Companies operates as five separate entities: Food Services of America, Inc. (FSA); System Services of America, Inc. (SSA); Amerifresh, Inc.; Ameristar Meats, Inc.; and GAMPAC Express, Inc. The combined companies serve approximately 33,000 customers, operate 12 distribution centers and own more than 20 private brands. SGA had 2017 net sales of $3.2 billion and employed approximately 3,400.

US Foods said the FSA operating company is one of the largest regional broadline distribution companies in the United States. It serves 16 states in the West and Midwest from nine distribution centers, and 40% of its net sales base comes from serving independent restaurants. FSAs account for 75% of the total sales of SGAs.

SSA is a multi-unit distribution food service company that distributes to casual and fast-casual dining establishments as well as regional and national quick-service restaurant chains. SSA provides 21% of SGA’s net sales.

Amerifresh, Inc. Offers production sourcing and marketing capabilities and makes up 2% of SGA’s net sales.

ssa truckAmeristar Meats, Inc. Offers custom meat products, including 18 beef programs, to meet customers’ specifications. Ameristar accounts for 1% of SGA’s total sales.

GAMPAC Express, Inc. is a supply chain planning and logistics company that provides 1% of SGA’s net sales.

As a result of the acquisition, US Foods said it expects to achieve approximately $55 million in annual run-rate cost synergies by the end of fiscal year 2022, driven by savings in distribution, procurement and administrative expenses.

“This acquisition will allow US Foods to reach key markets in the lucrative and growing Northwest region of America and one of the most well-known regional distributors for our company,” said Pietro Satriano, US Chairman and Chief Executive Officer. Food ingredient. “With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA’s Food Group of Companies is a perfect fit. The company’s unique merchandising program, mature local sourcing capabilities and track record of operational excellence will be strong additions to our business. We look forward to welcoming the talented teams at US Foods to SGA’s Food Group of Companies, providing even better service and expanded capabilities to customers, and accelerated growth and value to our shareholders.



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