Sachem Head Is Said to Propose Performance Food Board Candidates

Sachem Head Capital Management has privately nominated candidates to the board of Performance Food Group Co. after accumulating a position in the distributor, according to people with knowledge of the matter.

The activist investment firm wants Performance Food to explore ways to improve its profitability and thinks the company should consider a merger with rival US Foods Holding Corp., the people said, asking not to be identified discussing confidential information.

Shares of Performance Food have gained 20% this year, giving the company a market value of roughly $15.9 billion. The size of Sachem Head’s stake couldn’t immediately be learned. ...