The Wall Street Journal-20080122-Performance Food in Pact
Return to: The_Wall_Street_Journal-20080122
Performance Food in Pact
A WSJ News Roundup
Performance Food Group Co. agreed to be acquired by an affiliate of Blackstone Group LP and Wellspring Capital Management in a deal valued at about $1.3 billion.
The buyers said they plan to combine Performance Food, a marketer and distributor of food and food-related products, with Vistar Corp., a Denver-based food-services company that they already control.
Performance Food, based in Richmond, Va., markets and distributes food to more than 41,000 hotels, cafeterias, schools, health-care facilities and restaurants, including CBRL Group Inc.'s Cracker Barrel, Carlson Restaurant Worldwide's TGI Friday's, OSI Restaurant Partners LLC's Outback Steakhouse, and Ruby Tuesday Inc.
Performance Food stockholders would get $34.50 for each share outstanding, a 43% premium to Thursday's price of $24.19. Performance Food Group stock climbed $7.64, or 32%, to $31.83 in 4 p.m. Nasdaq Stock Market composite trading Friday.
Performance Food will also solicit superior proposals from third parties during the next 50 days. The company said it doesn't intend to disclose information regarding the solicitation process unless and until its board has revised its current recommendation to shareholders to approve the deal with Blackstone and Wellspring, which it unanimously adopted. The combined companies would operate under the name Performance Food, but each would retain its current headquarters.
