Sysco to acquire European rival
Foodservice distributor Sysco Corporation announced this week it has reached an agreement to acquire Brakes Group—a European foodservice distributor with operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg—for $3.1 billion. Owned by Bain Capital Private Equity, the transaction includes the repayment of approximately $2.3 billion of Brakes Group’s financial debt.
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. Brakes Group companies include: Brakes, Brakes Catering Equipment, Brake France, Country Choice, Davigel, Freshfayre, M&J Seafood, Menigo Foodservice, Pauley’s, Wild Harvest and Woodward Foodservice.
Headquartered in London, Brakes Group will operate as a standalone company within Sysco. “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,” says Bill DeLaney, Sysco CEO. “This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time. Beginning with a common customer-centric mindset, our companies are strategically aligned with compatible cultures and similar business models.”
The announcement of this deal comes months after a failed merger with American rival US Foods. The companies planned to merge last year, though Sysco pulled out of the agreement after a judge granted the Federal Trade Commission’s request to block the merger which charged the proposed union violated antitrust laws by significantly reducing competition nationwide.
US Foods announced earlier this month that the company will be going public.