Credit Suisse acted as the financial advisor to PFG. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to PFG. Winston & Strawn LLP, Neal, Gerber & Eisenberg LLP, and Arnold & Porter acted as legal counsel to Reinhart.
Performance Food Group Company (“PFG”) (NYSE: PFGC) has entered into a definitive agreement to acquire Reinhart Foodservice, L.L.C from Reyes Holdings, L.L.C. in a transaction valued at $2.0 billion, or approximately $1.7 billion net of an estimated tax benefit to PFG of approximately $265 million.
With annual net sales of over $6 billion, Reinhart is the second largest privately held foodservice distributor in the U.S. and is headquartered in Rosemont, IL.
The $2.0 billion purchase price is expected to be financed with borrowing on the company’s Asset-based Revolving Credit Facility, new Senior Unsecured Notes and Equity proceeds, subject to market conditions, of $300 million to $400 million. Affiliates of Credit Suisse and Wells Fargo provided committed financing for the acquisition.
The transaction, which has been approved by the Board of Directors of PFG and the governing body of Reinhart, is subject to U.S. federal antitrust clearance and other customary closing conditions and is expected to close by the end of the calendar year. The transaction is not subject to PFG shareholder approval.
The Skadden team includes: M&A partner Jeremy London (Washington, D.C.) and counsel Micah Kegley (Washington, D.C.); Banking partner Stephanie Teicher (New York); Capital Markets partner Laura Kaufmann Belkhayat (New York); Tax partner Jessica Hough (Washington, D.C.); Antitrust/Competition partner David Wales (Washington, D.C.); and Real Estate partner Audrey Sokoloff (New York).
Involved fees earner: Jessica Hough – Skadden Arps Slate Meager & Flom; Laura Kaufmann Belkhayat – Skadden Arps Slate Meager & Flom; Micah Kegley – Skadden Arps Slate Meager & Flom; Jeremy London – Skadden Arps Slate Meager & Flom; Audrey Sokoloff – Skadden Arps Slate Meager & Flom; Stephanie Teicher – Skadden Arps Slate Meager & Flom; David Wales – Skadden Arps Slate Meager & Flom;
Law Firms: Skadden Arps Slate Meager & Flom;
Clients: Performance Food Group;