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- Woolworths (WOW) will be extending its partnership with foodservice supplier PFD Food by acquiring a 65 per cent interest in the business for $302 million
- The Smith Family, who founded PFD Food, will retain the remaining 35 per cent and it will operate independently under CEO Kerry Smith
- The supermarket giant will also obtain 100 per cent of PFD’s freehold properties, primarily consisting of 26 distribution centres, for an additional $249 million
- This will be funded through Woolworths’ existing cash reserves and available debt facilities
- This transaction is subject to ACCC approval and the settlement of closing conditions which is expected to be completed by the end of 2020
- Woolworths has ended the day a slight 0.95 per cent in the green with shares trading for $40.58 each
Woolworths (WOW) will be extending its partnership with foodservice supplier PFD Food by acquiring a 65 per cent interest in the business for $302 million.
The Smith Family, who founded PFD Food, will retain the remaining 35 per cent and it will operate independently under CEO Kerry Smith.
The supermarket giant will also obtain 100 per cent of PFD’s freehold properties, primarily consisting of 26 distribution centres, for an additional $249 million.
“We are pleased to deepen our existing strategic partnership with Woolworths Group for the longer-term via their investment in our business,” Kerry said.
“As a family owned and operated business which prides itself on its customer and supplier relationships, it is important that PFD operates as a standalone business,” he added.
Woolworths will fund this through existing cash reserves and available debt facilities.
This transaction is subject to Australian Competition and Consumer Commission (ACCC) approval and the settlement of closing conditions which is expected to be completed by the end of 2020.
“We are excited by the opportunity to invest alongside the Smith family in PFD Food Services. It is a business we have long admired and we have a shared vision for continued innovation, customer focus and investment in the food sector,” Woolworths CEO Brad Banducci commented.
“We will help to support PFD’s growth through access to our logistics, digital and data analytics and operational capabilities. For Woolworths Group, it will enhance store range localisation and provide fleet synergies through better route and capacity optimisation across our combined network,” he added.
Woolworths has ended the day a slight 0.95 per cent in the green with shares trading for $40.58 each in a $50.77 billion market cap.
