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The Wall Street Journal reports that US Foods is buying five businesses from Services Group of America for $1.8 billion in a move designed to expand its presence in the Northwest.

The five companies are Food Services of America, Systems Services of America, Amerifresh, Ameristar Meats, and Gampac Express.

According to the story, “The all-cash deal is the latest sign of consolidation in the low-margin and increasingly competitive business of getting food to stores, service businesses and restaurants.”

The Journal writes that the acquisition comes after US Foods reported a disappointing quarter, and said that the company was “hurt by a shortage of truck drivers in a tight labor market. Across the U.S., strong economic growth is stoking high demand for freight while low unemployment has made it hard to recruit drivers.”

It was just last week that the food distribution industry saw another consolidation move, as United Natural Foods Inc. (UNFI) agreed to acquire Supervalu for $2.9 billion.
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