HOUSTON, TX—Two of the largest distributors of food to commercial kitchens are merging to create one of the largest private truck fleets in the U.S.
Sysco and U.S. Foods agreed on an $8.2 billion deal on Monday. The company will continue under the Sysco name with headquarters in Houston, Texas. At closing, Sysco will have estimated annual sales of approximately $65 billion.
Sysco will pay about $3.5 billion for the equity of US Foods, split between $3 billion in Sysco common stock and $500 million in cash, according to truckinginfo.
As part of the transaction, Sysco will also assume US Foods’ net debt – about $4.7 billion, bringing the total enterprise value to $8.2 billion.
After completion of the transaction, the equity holders of US Foods will own roughly 13 percent of Sysco.
Read the full trcukinginfo article here.
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