Business

Sysco To Merge With US Foods In Deal Worth $8.2 Billion

Houston-based Sysco Corporation has announced a merger with rival food distributor US Foods, in a deal worth roughly $8.2 billion.

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Sysco will pay $3 billion in common stock and $500 million in cash for control of US Foods. It will also assume or refinance the smaller company’s net debt, estimated at $4.7 billion.

Bill DeLaney, Sysco president and CEO, will lead the combined company. DeLaney addressed the merger in a conference call with investors this morning.

“We expect the transaction to close in the third quarter of Calendar Year 2014. Upon finalizing the merger, we will move forward as one company with annual sales of approximately $65 billion dollars.”

The new company will retain the Sysco name and remain headquartered in Houston. 

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

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