Activist hedge fund Sachem Head Capital Management, led by Scott Ferguson, has nominated four directors to the board of Performance Food Group (PFGC), according to a report by Reuters citing unnamed people familiar with the matter.
The move comes as the fund presses the food distributor to explore a merger with rival US Foods (USFD), in a bid to boost profitability. While US Foods has confirmed it approached Performance Food about a potential combination, Performance Food’s board and CEO George Holm have so far rejected engagement, saying there is “no basis” to proceed.
Sachem Head has prior experience in the sector, having won board representation at US Foods in 2022 before reaching a settlement. Ferguson himself served on US Foods’ board until February 2024. The hedge fund has recently built a stake in Performance Food, though the holding was not disclosed in its latest regulatory filings.
Performance Food currently has 12 directors, with the outcome of Sachem Head’s nominations yet to be determined. Both the company and the hedge fund declined to comment.
