Sysco Corporation (NYSE:SYY), the Houston TX-based foodservice distributor, has reached a definitive agreement to acquire Brakes Group, a leading European foodservice distributor with operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg.
Brakes Group is owned by Bain Capital Private Equity. The transaction is valued at about US $3.1 billion (approximately 2.2 billion British pounds) and includes the repayment of roughly $2.3 billion of Brakes Group’s financial debt.
Unanimously approved by Sysco’s board of directors, the transaction expands Sysco’s footprint in the United Kingdom and Ireland and further into Europe and positions the company for potential future expansion in these markets. The deal is subject to customary regulatory review by European Union competition authorities. The companies expect to complete the transaction before the end of Sysco’s fiscal year in July 2016.
Headquartered in London, Brakes Group will operate as a standalone company within Sysco. The Brakes Group business will continue to be led by Ken McMeikan, chief executive officer. His management team and the rest of the employee base will remain in place.
“We look forward to welcoming Brakes Group, its 15,000 employees, and Ken McMeikan and his highly respected leadership team to the Sysco family of companies,” said Bill DeLaney, Sysco chief executive officer. “This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time.”
In other news, Sysco announced that it has acquired North Star Seafood. With approximately $128 million in annual sales, North Star distributes quality fresh and frozen seafood to a combination of local, wholesale, cruise, export and retail customers throughout Florida. Financial terms were not disclosed.
All North Star employees and management will remain in place. For more information, see www.sysco.com.