Foodservice giant US Foods Holding Corp. is buying another food distributor for $1.8 billion.

Rosemont, Illinois-based US Foods has entered into a definitive agreement to buy Scottsdale, Arizona-based Service Group of America’s Food Group of Companies. The group contains five companies that operated independently:

  • Food Services of America Inc.;
  • Systems Services of America Inc.;
  • Amerifresh Inc.;
  • Ameristar Meats Inc.; and
  • GAMPAC Express Inc.

The group had combined 2017 net sales of $3.2 billion.

“This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to our company,” says US Foods Chairman and CEO Pietro Satriano. “With a shared commitment to customer service, including a proven track record of leveraging technology and private brands to meet customer needs, SGA’s Food Group of Companies is an ideal fit. The company’s unique merchandising programs, mature local sourcing capabilities and track record of operational excellence will be strong additions to our business. We look forward to welcoming the talented teams at SGA’s Food Group of Companies to US Foods, providing customers with even better service and expanded capabilities, and delivering accelerated growth and value to our shareholders.”