US Foods board approves $1B share repurchase authorization

US Foods Holding (USFD) announced that the Company and Performance Food Group (PFGC) have terminated the previously-announced information sharing process by mutual agreement and will no longer pursue a potential combination. US Foods also reiterates its Fiscal 2025 Outlook and 2025 to 2027 Long-range Plan and announces a planned $250 million accelerated share repurchase agreement under its current authorization. In addition, the Board of Directors approved a new $1 billion share repurchase authorization. “We have completed our thorough analysis, including synergies and regulatory considerations, of the potential benefits of a combination with PFG. 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,” stated Dave Flitman, CEO of US Foods. “We have concluded that our best path to long-term value creation is executing our Long-range Plan, including our disciplined capital allocation framework “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. The planned $250 million ASR agreement and the new $1 billion share repurchase authorization announced today underscore our focus on creating long-term shareholder value, the confidence we have in our future, and the acceleration of our operating cash flow.”