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Two foodservice giants, Sysco and US Foods, to merge

Sysco and US Foods have agreed to merge, in a deal with a total enterprise value of approximately $8.2 billion. The merger has been approved by each company’s board of directors.

The new company will retain the Sysco name and continue to be headquartered in Houston. Bill DeLaney, Sysco president and chief executive officer, will lead the new combined company.

Sysco will pay approximately $3.5 billion for the equity of US Foods, comprising $3 billion of Sysco common stock and $500 million of cash. As part of the transaction, Sysco will also assume or refinance US Foods’ net debt, which is currently approximately $4.7 billion, bringing the total enterprise value to $8.2 billion. Sysco has secured fully committed bridge financing and expects to issue permanent financing prior to closing, according to a company press release.

Originally posted Monday, Dec. 9, 2013

Tags: foodservice

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