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US Foods To Acquire SGA's Food Group Of Companies For $1.8 Bln - Quick Facts

US Foods Holding Corp. (USFD) and Services Group of America announced a definitive agreement under which US Foods will acquire five operating companies collectively known as SGA's Food Group of Companies, for $1.8 billion in cash. SGA's Food Group of Companies has combined 2017 net sales of $3.2 billion and approximately 3,400 employees.

US Foods will finance the acquisition primarily with $1.5 billion in fully committed term loan financing from J.P. Morgan and Bank of America Merrill Lynch and will fund the balance of the purchase price through its existing liquidity resources.

US Foods expects to achieve approximately $55 million in annual run-rate cost synergies by the end of fiscal 2022. Excluding amortization, the transaction is expected to become accretive to US Foods' adjusted EPS in the second full year following closing.

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