Sysco will acquire US Foods in a stock-and-cash deal valued at around $3.5 billion. The deal has been approved by the board of each company, and is expected to close in the third quarter of next year. Sysco agreed to assume or refinance US Foods debt worth around $4.7 billion.

The merged food-services distributor, with estimated sales of around $65 billion a year, will continue to be called Sysco and will be based out of Houston, TX.