Performance Food Group to acquire Redi-Cut Foods

Performance Food Group (Richmond, VA) announced that it has signed a definitive agreement to acquire privately owned Redi-Cut Foods, Inc. (Chicago), one of the nation's largest independent fresh-cut produce processors. The total consideration to be paid for the acquisition is approximately US$133 million, including cash, common stock of Performance Food Group and assumption of liabilities.

Redi-Cut is a leading processor of fresh-cut produce to the nation's leading quick-service restaurants and other sectors of the home meal replacement industry. The company, which is expected to report net sales of approximately $130 million for 2000, operates two modern processing facilities, including a recently completed 53,000 sq-ft. plant in Kansas City, MO. Redi-Cut has created one of the leading pre-cut commercial brands in the produce industry and built a leading market presence in the Midwest where it currently serves 95% of the region's quick-service restaurants.

"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," said Robert Sledd, chairman and CEO of Performance Food Group. "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."

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

Edited by Scott Hegenbart