Grocery giant gains 26 DCs in $552 million deal with logistics firm with 800 truck fleet
Woolworths Group has unveiled a deal which gives it 65 per cent of PFD Food Services.
The major supermarket owner will also acquire all PFD’s freehold properties centred on 26 distribution centres, Woolworths says.
Under the deal, Woolworths will initially invest $302 million in PFD to acquire a 65 per cent equity interest.
Woolworths Group will also acquire PFD’s freehold distribution centre properties for $249 million, which will be leased back to PFD.
The position of PFD’s fleet of around 800 vehicles is not mentioned.
“We are excited by the opportunity to invest alongside the Smith family in PFD Food Services Woolworths Group CEO Brad Banducci says.
“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.
“We look forward to delivering even better experiences together for our customers as we continue to respond to their changing needs in a post Covid world.
“This investment is a logical adjacency for Woolworths Group and further supports the evolution of the Group into a Food and Everyday Needs Ecosystem.
“It will build on our existing partnership with PFD, the number two player in the large and fragmented out-of-home foodservice and non-retail business-to-business markets.
“The investment will also unlock synergies for both businesses across the combined network and fleet.
“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.”
According to the group, PFD will operate independently under CEO Kerry Smith..
A separate board and governance structure will be implemented, with Rick Smith, the founder of PFD, continuing to be involved.
“We are pleased to deepen our existing strategic partnership with Woolworths Group for the longer-term via their investment in our business,” PFD Food Services CEO Kerry Smith says.
“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, run by the existing team.
“In Woolworths Group, we are confident we have found a partner with shared experience and expertise, but also whose operations and vision for the future complement our own.”