As part of a plan to expand across the North West US region, distribution company US Foods is to acquire five operating companies collectively known as SGA’s Food Group of Companies, for US$1.8 billion.

Based in Arizona, the SGA Group had combined sales of $3.2bn last year and employs 3,400. Meanwhile, US Foods generated $24bn in sales in 2017 and has 25,000 employees in more than 60 locations.

US Foods chief Pietro Satriano said: “This acquisition will significantly increase US Foods’ reach across key markets in the attractive and growing North West region of the US and adds one of the most well-regarded regional distributors to our company,”

SGA chief operating officer Slade Stewart added: “For the past 46 years, we have had the vision to become a leading national foodservice company. This is an exciting milestone on our journey and provides more success and growth opportunities for our customers and our associates.”