Performance Food to buy Redi-Cut Foods

Food distributor Performance Food Group (Richmond, VA) has signed a definitive agreement to purchase privately owned Redi-Cut Foods, Inc., a fresh-cut produce processor serving the U.S. Midwest's quick-service restaurants, for $133 million in cash and stock.

The deal, which includes assumption of liabilities by Performance, is expected to close in late 2000 or in early 2001.

Performance Food, which distributes food products to about 25,000 U.S. restaurants, hotels, cafeterias, schools and other institutions, said the purchase is expected to boost 2001 earnings by five cents a share, and even more afterward.

Redi-Cut, which is expected to report net sales of approximately $130 million for 2000, operates two modern processing facilities, including a recently completed 53,000-sqft plant in Kansas City.

Robert Sledd, chairman and CEO of Performance Food Group, remarked, "The acquisition of Redi-Cut represents an important step in the execution of our strategy to become a leading national processor/distributor of fresh-cut produce to multi-unit restaurant chains and other foodservice outlets. The addition of Redi-Cut will broaden our geographic reach to include the Midwest, where Redi-Cut has been an industry leader with the highest quality standards and well-established operating systems."

Phil Cooper, chairman of Redi-Cut, remarked, "We are excited about the prospect for joining Performance Food Group. The fresh-cut produce processing market is continuing to grow rapidly, and we believe that combining our resources will enable us to meet the needs of significantly more customers."

Upon closing of the acquisition, Carey Cooper, president and CEO of Redi-Cut, is expected to serve as chief operating officer of Performance Food Group's fresh-cut produce processing operations.

Edited by Pam Ahlberg,
Managing Editor, Food Online