US Foods gets FTC approval to acquire SGA Food Group

ROSEMONT - US Foods Holding Corp. has received conditional approval from the Federal Trade Commission to acquire SGA's Food Group of Companies for $1.8 billion in cash.

The five operating companies being acquired are Food Services of America, Inc., 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.

As a condition to receiving regulatory clearance from the FTC, US Foods will divest three FSA distribution facilities located in Kent, Wash.; Meridian, Idaho; and Fargo, N.D. US Foods plans to retain a portion of the business currently served from the Kent facility.

Divestiture proceeds of approximately $90 million will be used to reduce US Foods' debt. The combined annual Adjusted EBITDA of the facilities to be divested was approximately $21 million for fiscal 2018. Definitive agreements for each of the divestitures have been entered into with each of the respective buyers, and we expect to close these transactions within 30 days following the completion of the SGA Food Group acquisition.