US Foods Calls Off PFG Talks, Reaffirms Stand-Alone Path for Growth
US Foods Holding Corp. has formally ended exploration discussions with Performance Food Group (PFG) and reaffirmed its commitment to advancing its independent strategy.
In a Nov. 24 announcement, US Foods said the companies mutually agreed to terminate the information-sharing process launched earlier this year and will not proceed with a potential merger. The distributor simultaneously restated its full-year 2025 outlook and its 2025-27 long-range plan.
“We have completed our thorough analysis, including synergies and regulatory considerations, of the potential benefits of a combination with PFG,” said CEO Dave Flitman. “While we are pleased to have engaged in this exploratory process together, our Board of Directors and the Executive Leadership Team have determined that it is in the best interest of US Foods and its shareholders to terminate discussions regarding a potential combination.” Flitman added: “From the very beginning of this process, we have been clear about our ability to deliver on our growth algorithm as a standalone company. Our team’s execution and unwavering commitment to customer success have driven consistent above-market top and bottom line growth, and we remain firmly positioned to achieve our Long-range Plan.”
In tandem with the announcement, US Foods revealed a planned $250 million accelerated share repurchase agreement and a new $1 billion share-repurchase authorization — a move seen as reflecting the company’s confidence in pursuing independent growth and driving shareholder value.
Industry observers note that by dropping merger talks, US Foods avoids the integration complexity and regulatory risk associated with a large-scale consolidation. It can preserve focus on refining its distribution operations, enhancing fulfillment capabilities, and optimizing its capital allocation framework.
US Foods’ long-range plan targets 5 % compound annual growth in net sales. That blueprint signals the distributor’s belief that scale, platform enhancements, and operational excellence, rather than consolidation alone, will fuel its next chapter.
By reaffirming its 2025 outlook and deploying incremental capital via share buybacks, US Foods is doubling down on execution of its standalone strategy — one oriented around strengthening its core distribution footprint, optimizing network efficiency, and delivering value to customers and shareholders alike.
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