Reinhart Food-service is up for sale to Performance Food Group Co. for $2 billion according to
their agreement. Performance will be taking up ownership of Reinhart from Reyes Holdings LLC
in a cash deal as per the companies statement released o the 1 st of July. The combination will see
Performance’s sales shoot up to roughly $30 billion.

The deal between Performance and Reinhart depicts how it's been challenging to run the food-
service companies as costs go up. For instance, demands by trucker’s for higher wages is quite a
blow to the already squeezed low profits. To the positive side, the purchase will help
Performance save $50 million of expenses yearly for three years.

The estimated tax benefit by Performance is at $625 million. The estimated price is derived from
the expected earnings by Reinhart minus interests, taxes, depreciation, and amortization.
Performance, also experienced a rise in shares by 3.1%, to $41.26 on the 1 st of July. For the
entire years report, the stock has gained roughly 27% the current year.

Reinhart will allow Performance a broad geographical reach with a quite large customer
diversity with the inclusion of some solid independent customer bases building upon
Performance’s strong distribution capability, according to their CEO George Holm. Another
Performance Food company, Richmond, also experienced an increase in their bottom range to
10% from last year’s 9%.

The deal between Performance and Reinhart will be financed by the company's asset-based
revolving credit facility and other cash of almost $400 million provided by Credit Suisse and
Wells Fargo & Co.