Performance Food Group Co (NYSE:PFGC) stock fell 0.17% (As on August 15, 11:25:20 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter earnings. The company also announced plans to acquire Cheney Bros., Inc. for approximately $2.1 billion, expanding its footprint in the Southeastern U.S. The purchase price reflects a multiple of 13.0x to Cheney Brothers’ unaudited Trailing 12 month Adjusted EBITDA. Including the expected $50 million of run rate synergies, the purchase price reflects a 9.9x multiple. The transaction, which has been approved by the Board of Directors of PFG, is subject to U.S. federal antitrust clearance and other customary closing conditions and is expected to close in calendar 2025.

Meanwhile, total case volume increased 1.1% for the fourth quarter of fiscal 2024 compared to the prior year period. Total organic case volume increased 0.7% for the fourth quarter of fiscal 2024 compared to the prior year period. Gross profit for the fourth quarter of fiscal 2024 grew 4.7% to $1.7 billion compared to the prior year period. The gross profit increase was primarily attributable to a favorable shift in the mix of cases sold, including growth in the independent channel and Performance Brands, as well as cost of goods sold optimization through procurement efficiencies, and recent acquisitions. Net income for the fourth quarter of fiscal 2024 increased $16.4 million year-over-year to $166.5 million. For the quarter, Adjusted EBITDA rose 18.4% to $456.2 million compared to the prior year period.

PFGC in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.45, beating the analysts’ estimates for the adjusted earnings per share of $1.37. The company had reported the adjusted revenue growth of 2.2 percent to $15.2 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $15.26 billion.

For Q1 fiscal 2025, PFG expects revenue between $15.2-$15.5 billion. The company forecasts full-year fiscal 2025 revenue of $60-$61 billion, in line with analyst projections of $60.8 billion.

Additionally, PFG expects to accelerate share repurchases in fiscal 2025, with $210.6 million remaining under its current buyback authorization as of June 29. In fiscal 2024, PFG invested $395.6 million in capital expenditures, an increase of $125.9 million versus the prior year period. In fiscal 2024, PFG delivered free cash flow of $767.4 million compared to free cash flow of $562.4 million in the prior year.