On Wednesday, US Foods Holding Corp. received conditional approval from the Federal Trade Commission to acquire SGA’s Food Group of Companies (SGA Food Group) for $1.8 billion in cash. The approval comes after months of antitrust debates.
The companies expected to be acquired are Food Services of America, Inc. (FSA), Systems Services of America, Inc., Amerifresh, Inc., Ameristar Meats, Inc. and GAMPAC Express, Inc. US Foods expects to close the acquisition in the next few days.
Under the proposed consent agreement, US Foods must divest three FSA distribution centers — one in Boise, Idaho; another in Fargo, North Dakota; and a third in the greater Seattle area — within 30 days of the acquisition closing.
In 2015, the FTC blocked a proposed merger between US Foods and Sysco Corp., the nation’s two largest broadline foodservice distributors.
“We are excited to finalize this transaction and enhance our overall scale and footprint in the attractive Northwest and West regions,” Pietro Satriano, US Foods chairman and CEO, said in a statement.
“Both companies share a strong commitment to innovation and customer service, which will enable us to bring US Foods’ industry leading product innovation and technology to SGA Food Group customers as well as to share SGA Food Group’s unique center of plate, produce and logistics capabilities with US Foods customers.”