Woolworths has purchased 65 per cent of food distributor PFD Food Services, as well as all of its distribution centres, in a $552 million acquisition.

The move, according to CEO Brad Banducci, further supports Woolies’ evolution into a ‘food and everyday needs ecosystem’.

“The investment will also unlock synergies for both businesses across the combined network and fleet,” Banducci said.

“We will help to support PFD’s growth through access to our logistics, digital and data analytics and operational capabilities.

“For Woolworths Group, it will enhance store range localisation and provide fleet synergies through better route and capacity optimisation across our combined network.”

The acquisition is subject to ACCC approval, though Woolworths expects the deal to be completed at the end of calendar year 2020.

PFD will continue to operate independently under CEO Kerry Smith, with a separate board and governance structure to be implemented.

“As a family owned and operated business which prides itself on its customer and supplier relationships, it is important that PFD operates as a standalone business run by the existing team,” Smith said.

“In Woolworths Group we are confident we have found a partner with shared experience and expertise, but also whose operations and vision for the future complement our own.”