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
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.
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.
Jun. 8, 2015, 3:42 AM
- While mergers and acquisitions have accelerated sharply since the financial crisis, the government's pace for reviewing proposed deals is slowing.
- In such deal reviews concluded this year, more than 10 months elapsed, on average, between the transaction's announcement and a yes-or-no decision by the FTC or Justice Department. That's an increase from an average of seven months in recent years.
- Notables: Comcast's (NASDAQ:CMCSA) bid for Time Warner (NYSE:TWC) was pending for 14 months before it was dropped in April. Applied Materials (NASDAQ:AMAT) walked away from its deal to acquire Tokyo Electron (OTCPK:TOELY) 19 months after it was announced, while the FTC spent more than a year examining Sysco's (NYSE:SYY) planned acquisition of U.S. Foods before bringing a lawsuit against it in February.
May 15, 2015, 4:43 PM
- Sysco (NYSE:SYY) will be left on the hook for ~$1B if the U.S. government kills its $3.5B merger with US Foods, based on a Reuters analysis of its SEC filings.
- SYY already has spent more than $400M on a combination of integration planning, financing charges and defending the transaction in court.
- If the FTC is successful in blocking the merger, SYY would have to pay US Foods a $300M termination fee, plus up to $25M to Performance Food Group, which has agreed to buy assets to be divested; also, if the deal does not close by Oct. 8, SYY likely would incur another $265M in losses, including the cost of redeeming $5B in bonds set to be used for the acquisition.
- The potential $1B in costs shows the dangers companies face when they decide to go forward with an aggressive deal at a time when the U.S. government is taking a more active stance in stopping deals it sees as reducing competition.
May 11, 2015, 9:05 PM
- A US Foods executive said in federal court today that his company would walk away from its planned merger with Sysco (NYSE:SYY) if the presiding judge issues an injunction to preliminarily block the deal.
- David Schreibman, an executive VP at US Foods, told the judge that his company is not willing to endure a protracted legal fight with U.S. antitrust enforcers.
- Also, SYY CEO Bill DeLaney disputed government claims his company could target customers for price increases if it acquired US Foods, saying customers would take their business to other distributors.
- The FTC, which sued the companies in February after spending more than a year reviewing the proposed merger, wants the judge to block the deal preliminarily while it holds a longer in-house administrative beginning in July.
May 4, 2015, 2:49 AM
- The U.S.'s two largest food distributors, Sysco (NYSE:SYY) and U.S. Foods, and the Federal Trade Commission will square off in a Washington federal court tomorrow, in a seven-day hearing that will decide the fate of their planned merger.
- The FTC filed suit in February to block the merger after investigating it for more than a year, arguing that the deal would "eliminate significant competition...and create a dominant national broadline food service distributor."
Feb. 20, 2015, 1:57 AM
- Just after it hired top antitrust lawyers to counsel it in its fight with the Federal Trade Commission, Sysco (NYSE:SYY) has got word that the FTC filed suit against its proposed $3.5B takeover of rival U.S. Foods.
- "This proposed merger would eliminate significant competition in the marketplace and create a dominant national broadline food service distributor," Debbie Feinstein, director of the FTC's Bureau of Competition, said in a statement.
- Previously: Sysco arms itself for possible merger fight (Feb. 19 2015)
Feb. 19, 2015, 3:03 AM
- Sysco (NYSE:SYY) has hired top antitrust lawyers as its counsel if the Federal Trade Commission files a lawsuit to block its $3.5B purchase of rival U.S. Foods.
- The move comes after Sysco concluded a series of meetings with the FTC last Wednesday and follows concerns from the agency that the deal could limit competition and lead to higher prices.
- Previously, Sysco and U.S. Foods offered to sell 11 distribution centers with $5B in sales in hopes of an approval.
- Previously: Sysco-U.S. Foods merger facing tough approval (Jan. 29 2015)
Feb. 12, 2015, 2:26 AM
- Looking to avert a possible antitrust lawsuit, Sysco (NYSE:SYY) has met with the five commissioners of the Federal Trade Commission to discuss the food distributor’s planned $3.5B purchase of rival U.S. Foods.
- The commissioners have been considering input from FTC staffers who want to challenge the merger, but others within the agency think accepting divestitures from the companies could be a workable alternative, WSJ reports.
- FTC staff members have been concerned the deal could limit competition and lead to higher prices.
- Previously: Sysco-U.S. Foods merger facing tough approval (Jan. 29 2015)
Jan. 29, 2015, 1:59 AM
- The approval for an $8.2B Sysco (NYSE:SYY)-U.S. Foods deal is being delayed again after the FTC sent a subpoena to a third-party food distributor this week asking for more information.
- "I think it’s shockingly unclear” at this point whether the FTC is preparing to clear the merger," a source told the NY Post.
- Antitrust concerns are focused on whether the deal will drive up costs, as the two are the only ones with geographic reach to offer nationwide contracts for a wide variety of goods.
- Previously: Sysco to divest assets to win merger approval (Nov. 21 2014)
- Previously: FTC questions Sysco, US Foods merger (Sep. 23 2014)
Dec. 11, 2014, 1:56 PM
Nov. 21, 2014, 6:49 AM
- Sysco (NYSE:SYY) is in talks to sell some assets to a food company owned by Blackstone (NYSE:BX) in order to win regulatory approval for its acquisition of US Foods, reports the New York Post.
- Sysco said in December 2013 that it would buy US Foods for about $3.5B, merging the two biggest U.S. food distributors.
- Previously: FTC questions Sysco, US Foods merger
Sep. 23, 2014, 1:52 AM
- The Federal Trade Commission is debating whether to file an antitrust lawsuit to block Sysco's (NYSE:SYY) $3.5B proposed merger with US Foods, which was announced last December.
- Antitrust concerns focus on whether the merger will drive up costs, as the two companies combined would make up more than 25% of the $231B U.S. food-distribution industry.
- The FTC is also exploring alternatives to require Sysco and US Foods to divest assets to competitors.
- SYY -1.5% AH
Jan. 16, 2014, 6:19 PM
- Florida's attorney general's office says it is part of a multi-state probe reviewing the proposed merger of Sysco (SYY) and US Foods.
- SYY plans to buy its rival for ~$3.5B in a deal that would create a company commanding at least a quarter of the $235B North American food distribution market.
- The state AGs will work with the Justice Department and/or the Federal Trade Commission, both of which review proposed mergers, to ensure the deal complies with antitrust law.
Dec. 9, 2013, 8:11 AM
- 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.