Tue, Jul. 5, 12:56 PM
- Sysco (SYY +1.1%) announces that it completed the $3.1B acquisition of Brakes Group.
- Brakes Group is a major foodservice distributor in the United Kingdom, France and Sweden, with additional operations in Ireland, Spain, Belgium and Luxembourg. The company's revenue last year totaled $5B.
- "This acquisition significantly strengthens Sysco’s position as the world’s leading foodservice distributor and offers attractive opportunities for organic growth and future expansion in European markets," says Sysco CEO Bill DeLaney.
- Brakes Group will operate as a wholly-owned subsidiary of Sysco with Brakes Group chief executive officer Ken McMeikan leading the business.
- Source: Press Release
Tue, Jul. 5, 6:48 AM
- Sysco Corporation (NYSE:SYY) announced acquisition of Supplies on the Fly for an undisclosed sum.
- “We are very excited to welcome our partners from Supplies on the Fly into the Sysco family of companies and we look forward to maximizing this opportunity to drive new growth in the $10B restaurant supplies and equipment segment,” said Bill Day, Sysco’s executive vice president of merchandising and Sysco business services. “With annual revenue of approximately $105M, Supplies on the Fly has delivered consistent and impressive sales growth over the past three years, significantly outpacing category growth in supplies and equipment over the same period.”
- All the current employees of Supplies on the Fly will be reatined and continue business as usual under the leadership of Craig Callaway, CEO.
- Press Release
Wed, May 25, 2:19 PM
- US Foods (Pending:USFD) is expected to price its IPO tonight in front of the public debut of shares tomorrow on the NYSE.
- The company is selling 44.4M shares in a range of $21 to $24 with funds earmarked toward improving the credit profile of the food distributor.
- The Wall Street underwriters on the deal are in a quiet period, but SA contributor Don Dion has a breakdown for investors.
- The eventual market cap valuation of US Foods will be of interest to Sysco (NYSE:SYY) shareholders with Sysco growing sales at a more rapid rate than its rival over the last few years.
Fri, May 20, 5:10 PM
Fri, May 13, 11:09 AM
- US Foods (Pending:USFD) plans to sell 44.4M shares in a price range of $21 to $24 in its public launch.
- The company will raise $999M at the mid-point of the range.
- US Foods is one of the two dominant players in the food distribution industry along with Sysco (NYSE:SYY) and offers more than 400K fresh, frozen, and dry food SKUs and non-food items. Revenue for FY15 was a cool $23.13B.
- SEC Form S-1
Tue, May 3, 10:37 AM
- Wells Fargo raises SYSCO's (NYSE:SYY) valuation range to $53-54 (from $50-51) following yesterday's earnings beat.
- "Despite escalating expectations into the print (owing to strong FQ2 results and an improving long term outlook), SYY managed to deliver another $0.04 EPS beat on accelerating local case growth and further progress on initiatives. This was SYY’s 4th consecutive quarter of gross margin expansion following 9 quarters of declines, and the gross profit/OpEx growth spread widened to +266bps (vs. +160bps in FQ2).
- "We continue to see upside potential to our/consensus estimates given strong industry fundamentals (particularly for local customers), gross margin and expense management improvement and M&A accretion.
- "We believe upside to EPS estimates remain the primary driver of shares, and we see favorable risk/reward given SYY’s strong free cash flow, balance sheet optionality and potential for improved operating results."
- SYY currently -0.3% to $48.46.
- Related: Sysco's William J. DeLaney on Q3 Results
- Now read The Big 3: US Foods Compared To Public Peers Sysco And Performance Food »
Mon, May 2, 8:04 AM
Sun, May 1, 5:30 PM
Mon, Mar. 28, 5:14 PM
- These are stocks rated Outperform by Credit Suisse in which the bank's price target differs greatly from Street consensus.
- Agios Pharmaceuticals (NASDAQ:AGIO) has a PT of $66 at CS vs. the Street at $52.40 and current price of $37.91. Autodesk (NASDAQ:ADSK) a $100 PT vs. the Street at $63.63 and current of $57.37. Box (NYSE:BOX) a $24 PT vs. the Street at $20.14 and current of $12.18.
- Caterpillar (NYSE:CAT) a PT of $72 vs. the Street at $64.61 and current $75.29. Dunkin' Brands (NASDAQ:DNKN) a $50 PT vs. the Street at $46.16 and current $45.32. Kellogg (NYSE:K) a $82 PT vs the Street at $76.47 and current $75.44.
- Manitowoc (NYSE:MTW) a $5.10 PT vs. the Street at $4.03 and current $4.37. Nationstar Mortgage (NYSE:NSM) a $19 PT vs. the Street at $14.19 and current $9.77. Patterson (NASDAQ:PDCO) a $55 PT vs. the Street at $50.33 and current $44.66.
- Sysco (NYSE:SYY) a $50 PT vs. the Street at $43.18 and current $46.24. U.S. Steel (NYSE:X) a $22 PT vs. the Street at $10.97 and current $15.78.
- Of this group, Box, Inc. in the only one with a majority-Buy rating. Not surprisingly, CS has higher earnings estimates than consensus for both this year and next.
Mon, Feb. 22, 8:59 AM
- Sysco (NYSE:SYY) acquires Brakes Group from Bain Capital in a transaction valued at $3.1B.
- Brakes is an European foodservice distributor that churned up over $5B in revenue during its last fiscal year.
- The deal is expected to close before the end of Sysco's fiscal year in July.
Fri, Feb. 19, 12:47 PM
Mon, Feb. 1, 10:22 AM
- Sysco (SYY +5.8%) jets higher after volume gains in FQ2 helped to drive results above expectations.
- The company has bounced back from the U.S. Foods merger rejection quicker than some analysts anticipated.
- Previously: SYSCO beats by $0.07, revenue in-line (Feb. 1)
- Previously: More on SYSCO's FQ2 (Feb. 1)
Mon, Feb. 1, 8:44 AM
- SYSCO (NYSE:SYY) reports Broadline sales rose 0.6% to $9.6B in FQ2.
- SYGMA sales dropped 3.4% to $1.5B.
- Other sales increased 10.9% to $1.4B.
- Acquisition contributed 0.4 percentage point of growth in the quarter.
- Gross margin rate improved 50 bps to 17.75%.
- Adjusted operating margin rate grew 31 bps to 3.59%.
Mon, Feb. 1, 8:06 AM
- SYSCO (NYSE:SYY): FQ2 EPS of $0.48 beats by $0.07.
- Revenue of $12.15B (+0.5% Y/Y) in-line.
Sun, Jan. 31, 5:30 PM
Sun, Jan. 3, 8:45 AM
- Despite a record-setting year for M&A, 2015 has also been full of plenty of no's from U.S. antitrust officials:
- Staples (NASDAQ:SPLS) agreed to buy its rival Office Depot (NASDAQ:ODP) in February for more than $6B, but regulators worried the tie-up would eliminate competition and sought to block the merger in December.
- Although General Electric (NYSE:GE) decided to sell its appliances business to Electrolux (OTCPK:ELUXY) for $3.3B in 2014, the Justice Department filed suit this summer, alleging the deal would result in higher kitchen appliance prices. GE walked away from the deal last month.
- Sysco (NYSE:SYY) reached its $3.5B deal for U.S. Foods in December 2013, hoping the combination would help it cut costs, however, the tie-up got shot down by the FTC in June.
- The nation's two biggest cable operators, Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC), reached a $45.2B deal to combine in February 2014, although the DOJ said the merger would make Comcast "an unavoidable gatekeeper for Internet-based services." The latter canceled the deal in April.
- Thai Union (OTC:TUFRF), owner of the Chicken of the Sea brand, struck a $1.5B deal for U.S. rival Bumble Bee Seafoods in December 2014, but the companies walked away from the agreement a year later amid antitrust objections.
Sysco Corp. engages in the selling, marketing and distribution of food and food related products primarily to the foodservice or food-away-from-home industry. It operates through the following segments: Broadline, SYGMA and Others. The Broadline segment distributes a full line of food products... More
Industry: Food Wholesale
Country: United States
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