Sector News

Sysco says US Foods acquisition unlikely to close this year

November 4, 2014
Food & Drink
(Reuters) – Food distributor Sysco Corp said it did not expect to complete its acquisition of US Foods Inc this year and it was still in talks with U.S. antitrust regulators to secure an approval for the deal.
 
Shares of Sysco, which also reported better-than-expected quarterly sales and profit, fell 3 percent in early trading.
 
The Federal Trade Commission has been closely reviewing the deal as the two companies are the only ones with geographic reach to offer nationwide contracts for a wide range of goods to customers ranging from hotel chains to fast food restaurants.
 
“Given the amount of work remaining, and considering the upcoming holidays, the company does not currently expect to complete the transaction before the first quarter of 2015,” Sysco said in a statement on Monday.
 
Sysco said in December 2013 that it would buy US Foods for about $3.5 billion from its private equity owners, including KKR & Co.
 
The deal, which will combine the top two U.S. food distributors and create a company commanding at least a quarter of the $235 billion North American market, was earlier expected to be completed before October.
 
Reuters reported last month that Sysco was trying to craft a package of potential asset sales to get approval for the deal and was in talks with three big regional players – Reinhart Foodservice, Performance Food Group and Gordon Food Service – for these assets.
 
Sysco said on Monday its net profit fell to $278.8 million, or 47 cents per share, in the first quarter ended Sept. 27 from $285.6 million, or 48 cents per share, a year earlier.
 
Excluding items, the company earned 52 cents per share.
 
Sales rose 6.2 percent to $12.45 billion.
 
Analysts on an average had expected earnings of 51 cents per share and revenue of $12.36 billion, according to Thomson Reuters I/B/E/S.
 
Sysco shares were down 2.4 percent at $37.58 in morning trading on the New York Stock Exchange. (Reporting by Shailaja Sharma and Sruthi Ramakrishnan in Bangalore; Editing by Kirti Pandey)

comments closed

Related News

January 29, 2023

Danone appoints three new deputy CEOs

Food & Drink

Danone has appointed three deputy CEOs to “better connect categories and regions” and drive the delivery of its ‘Renew Danone’ strategy. The new appointees are Veronique Penchienati-Bosetta, Shane Grant and Juergen Esser. They will report to Danone CEO Antoine de Saint-Affrique.

January 29, 2023

PepsiCo Portugal invests €7.5m in biodigester

Food & Drink

PepsiCo Portugal has announced that it will invest €7.5 million to construct a new biodigester, which will turn organic waste into biogas. As well as helping its Carregado facility to achieve a 30% reduction in carbon emissions, the biodigester will also contribute to reducing gas consumption, allowing the installation to use the biogas produced during the anaerobic digestion process.

January 29, 2023

Kerry’s fellowship with Upcycled Food Foundation explores future of food waste prevention

Food & Drink

Kerry is sponsoring The Kerry Upcycled Food Foundation Fellowship in a new partnership with the Upcycled Food Foundation (UFF), the non-profit subsidiary of the Upcycled Food Association (UFA). The research fellowship is the second initiated by the UFF and will work toward advancing the understanding of the market, consumer perception and technical opportunities of upcycled food.

How can we help you?

We're easy to reach