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Sysco lands US Foods in large foodservice merger

  • Sysco (SYY) buys U.S. Foods in a deal that has a total enterprise value of close to $8.2B inclusive of the assumption of debt.
  • After the merger closes, US Foods shareholders will hold approximately 87M shares of Sysco.
  • The new combined company expects to realize annual synergies of $600M.
  • The deal is slated to close in Q3 of 2014.
  • SYY +10.2% premarket.
Comments (9)
  • Tbird1
    , contributor
    Comments (15) | Send Message
     
    Big news because US Foods is such a loser.
    9 Dec 2013, 09:03 AM Reply Like
  • TAS
    , contributor
    Comments (1983) | Send Message
     
    Do I sense a monopoly on bad restaurant food?
    9 Dec 2013, 09:12 AM Reply Like
  • fuzzymc
    , contributor
    Comments (102) | Send Message
     
    Dealt with us foods at a pa fair screwed up every order I gave them!!
    9 Dec 2013, 09:31 AM Reply Like
  • Van Hyder
    , contributor
    Comments (162) | Send Message
     
    I've never understood investing in Sysco, they run each of their OpCos like a separate company that take directives from Corporate as though they were suggestions. But good luck to any of you folks that want to play in this space.
    9 Dec 2013, 01:56 PM Reply Like
  • Maerzie
    , contributor
    Comments (21) | Send Message
     
    SYY HAD BEEN a good company! I hope this doesn't bring it down. I don't see any advantage to SYY shareholders, since US Foods isn't as high a quality of service; it seems more of a penalty!
    9 Dec 2013, 02:51 PM Reply Like
  • Maerzie
    , contributor
    Comments (21) | Send Message
     
    I don't see the advantage to SYY, if US Foods is an inferior company??
    9 Dec 2013, 02:51 PM Reply Like
  • timothy ohearn
    , contributor
    Comment (1) | Send Message
     
    Have done business with Sysco when they were Albany frosted foods and always gave excellent service and fair pricing.
    9 Dec 2013, 02:52 PM Reply Like
  • syscogold
    , contributor
    Comment (1) | Send Message
     
    People had the same negative comments when Sysco bought Continental Food Services almost 25 years ago. That turned out to be a spectacular deal. I expect Sysco to do just as well with the US Foods acquisition.
    9 Dec 2013, 05:03 PM Reply Like
  • Maerzie
    , contributor
    Comments (21) | Send Message
     
    I hope you're right. I'll be keeping an eye on it!
    11 Dec 2013, 01:28 AM Reply Like
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