Sysco Corp shares leap on news it will buy US Foods for
food distributor, driving up Sysco’s shares 30% before the bell.
Shareholders of US Foods, owned by affiliates of private equity firms Clayton, Dubilier Rice and KKR Co, will own about 13% of Sysco after the closing of the deal, which will create a company with revenue of US$65 billion.
“Combining and maximizing the significant strengths of two outstanding companies is certain to be of tremendous advantage in supporting our customers,” US Foods Chief Executive John Lederer said in a statement on Monday.
Sysco and US Foods distribute foods to restaurants, hotels, hospitals, schools and other institutions.
Sysco said the deal is expected to add to earnings immediately after closing, expected in the third quarter of 2014 ray ban uk .
Goldman Sachs Co is financial adviser to Sysco, while Wachtell, Lipto ray ban uk n, Rosen Katz and Arnall, Golden Gregory LLP are legal advi ray ban uk sers. Simpson Thacher Bartlet ray ban uk t LLP and Debevoise Plimpton LLP are legal advisers to US Foods.
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