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Sysco And US Foods Agree To Merge, Creating A World-Class Foodservice Company

Combination brings together the best of both companies to do more for our customers and invest in accelerating the transformation of Sysco and the industry Total enterprise value of $8.2 billion, representing 9.9x US Foods' trailing 12-month adjusted EBITDA of $826 million before synergies Expect to achieve annual synergies of at least $600 million More information on the transaction, including video material, can be found at
US Foods Company Logo

HOUSTON and ROSEMONT, Ill, Dec, 9, 2013 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) and US Foods today announced an agreement to merge, creating a world-class foodservice company. The total enterprise value of the transaction is approximately $8.2 billion and the combination has been approved by the Board of Directors of each company.

Bill DeLaney, Sysco president and chief executive officer, will lead the combined company, which will continue to be named Sysco and headquartered in Houston, Texas. At closing, Sysco will have estimated annual sales of approximately $65 billion.

Sysco will pay approximately $3.5 billion for the equity of US Foods, comprising $3 billion of Sysco common stock and $500 million of cash. As part of the transaction, Sysco will also assume or refinance US Foods' net debt, which is currently approximately $4.7 billion, bringing the total enterprise value to $8.2 billion. Sysco has secured fully committed bridge financing and expects to issue permanent financing prior to closing.

After completion of the transaction, the equity holders of US Foods will own approximately 87 million shares, or roughly 13% of Sysco. A representative of each of US Foods' majority shareholders, affiliates of Clayton, Dubilier & Rice LLC and Kohlberg Kravis Roberts & Co. L.P., will join Sysco's Board of Directors upon closing.

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