The transaction is expected to close in the third quarter. Valued at approximately $85 million, it will include cash, common shares of PFG and assumption of certain liabilities. The existing SFC management team will remain in place.
The addition will fill a geographic void in the Northeast, between PFG?s AFI Food Service subsidiary in the metro New York area, and its NorthCenter Foodservice subsidiary in Maine. "Adding SFC will importantly strengthen our overall competitive posture in this heavily populated and attractive market territory," notes Robert C. Sledd, PFG chairman and ceo. "We expect only a nominal accretion from this transaction to our earnings per share for 2001 during this period of integration but anticipate a contribution of approximately $185 million to net sales and $0.03 per share to earnings for 2002."
"It?s a wonderful strategic fit for us and a well run, well respected company," adds C. Michael Gray, PFG president and coo.
"We have grown at a rapid pace in both top and bottom-line results as a regional independent, and our success has been substantially derived from a culture built for speed and efficiency," comments Joseph A. Cambi, president and ceo of SFC and outgoing co-chair of UniPro. "However, in order for our team to maximize our revenue and earnings growth potential for the long term, we felt it strategically prudent to align with a leading and formidable partner that could provide the best combination of resources and autonomy necessary to do what this market demands and what we believe is strategically effective."