Sysco Corporation: The Impact Of The Mega Deal Quantified
- Sysco is looking forward to acquire US Foods against a consideration of $3.5 billion. The combination will enhance the company’s market share domestically.
- Afterwards, Sysco will be representing 25% of the total market and rake in total revenue of $231 billion.
- On a per share basis, the net incremental revenue and cost synergies are projected to uplift Sysco’s EPS by $1.06 annually in the upcoming years following the acquisition.
- Being a regular income provider, the company is offering a superior dividend yield of 3.09% to its investors.
- Apart from the acquisition of US Foods, the company is offering a higher ROE of 17.81% whereas the peers are on average generating 12.31% for the shareholders.