Chairman & Chief Executive Officer, Performance Food
Search every verified George Holm interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. George Holm, Chairman and CEO of Performance Food Group, discussed the company's initial public offering on CNBC on September 17, 2016. He stated that the decision to proceed with the IPO occurred during a period of market volatility, noting that the company's investors were not selling their shares and that the offering consisted entirely of primary shares. The stock priced at $19 per share, below the expected range of $22 to $25. Holm said the company was using the proceeds to pay down debt and that its investors were "feeling good." Holm addressed the blocked merger between Sysco and US Foods, calling it "disappointing" and noting that Performance Food Group would have been a beneficiary of divestitures from that deal. He said the company planned to continue making acquisitions, having completed 13 since its own acquisition of PFG, and that it would pursue "a lot more smaller deals." Regarding the exit timeline for the company's private equity owners, Holm said they would likely conduct a secondary offering after the lockup period and exit within a year to 18 months. On industry conditions, Holm described a period of food price deflation and said that improving employment and the growth of two-income families were positive factors for the foodservice industry.
“Our investors weren't selling any of their shares so they were doing all primary shares and just no reason not to go through. Never a good time right but it clearly has cost you if you came through with an expected price range of 22 to 25 a share that's correct priced at 19.”
“We're using the proceeds to pay down debt so we just don't pay down as much debt as we expected and we're happy. Our investors are feeling good so I feel good.”
“We not only have that but we have a much improved balance sheet using the proceeds to pay down debt and we've made 13 acquisitions since the acquisition of PFG and we want to continue.”
“We would have been a beneficiary potentially though if that US Foods and Sysco deal had been allowed to go through. They were going to divest a lot of stuff to your very company. That was disappointing.”
“You got to just do a lot more smaller deals than doing that big one that's correct but you expect to yes.”
“That'll certainly be their decision. They told you is it in the paperwork? You know they'll do a secondary sometime after the lockup period is done and I think as long as we're trading well and continue to improve that'll be successful and they'll probably get out a year, 18 months something like that.”
“We're actually going through a period of deflation right now so probably not the egg. I think you know that's a kind of a one-off difficult for everybody us included but today I mean food pricing is actually very soft in an environment where structurally you think more people will be eating away from home.”
“The consumer is doing better, employment is getting better. What's particularly good for us is the two income family that's when that eating out kind of goes from being discretionary to being a necessity. So we have a great outlook right now.”
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