The Federal Trade Commission's conditional approval will require US Foods to divest certain assets.
US Foods announced September 13 it successfully acquired SGA’s Food Group of Companies. The all-cash deal, valued at $1.8 billion, was approved by the Federal Trade Commission September 11 after months of anti-trust debate.
In the deal, US foods will acquire five operating companies: Food Services of America, Inc., Systems Services of America, Inc., Amerifresh, Inc., Ameristar Meats, Inc. and GAMPAC Express, Inc. The deal is set to close in a few days, the company said in a statement.
As a condition of the deal, US Foods will divest three FSA distribution facilities located in Kent (Seattle), Washington; Meridian (Boise), Idaho; and Fargo, North Dakota, within 30 days of the acquisition closing.
US Foods proposed the deal last summer in order to expand its presence across the Northwest.
“We are excited to finalize this transaction and enhance our overall scale and footprint in the attractive Northwest and West regions,” US Foods chairman and CEO Pietro Satriano said in a statement. “Both companies share a strong commitment to innovation and customer service, which will enable us to bring US Foods’ industry leading product innovation and technology to SGA Food Group customers as well as to share SGA Food Group’s unique center of plate, produce and logistics capabilities with US Foods customers.”
In 2015, the FTC blocked a merger between the two largest U.S. food distributors, US Foods and Sysco. A federal judge found the merger “was likely to reduce competition nationwide and in several regional markets,” according to a statement.