Performance Food Group Co. (PFGC) shares jumped in intraday trading on Wednesday after the company announced the $2.1 billion cash acquisition of foodservice distributor Cheney Bros. and reported fourth-quarter adjusted earnings per share (EPS) that beat expectations.

The acquisition will allow Richmond, Virginia-based PFG to expand its distribution presence to four southeastern states with the addition of five distribution facilities. Cheney Bros. has annual revenue of approximately $3.2 billion and is currently owned by the Cheney family and private equity firm Clayton Dubilier & Rice.

“Cheney Brothers will be an excellent addition to our foodservice segment and we are excited to welcome their many talented employees to the PFG family of companies,” said Chief Executive Officer (CEO) George Holm. “This acquisition will expand and enhance our offerings to a high-quality and diverse customer base. We have long admired Cheney Brothers’ success in the Southeastern United States and believe the combination of our organizations will take the business to new heights.”

PFG Q4: Adjusted earnings per share exceed estimates

In the fiscal fourth quarter, the company reported adjusted earnings per share of $1.45, beating analyst consensus expectations, according to Visible Alpha. Net revenue of $15.19 billion, up 2% year over year, was just below estimates.

The company’s shares rose 7.7% to $72.27 by 2 p.m. ET Wednesday, putting it in positive territory for 2024.