Following news of an acquisition, Sysco Corp. (NYSE: SYY) took a backseat to the bullish run that the broad markets made Monday. The company announced that it has reached a definitive agreement to acquire Brakes Group, a leading European foodservice distributor.
Brakes Group is owned by Bain Capital Private Equity. The transaction is valued at roughly $3.1 billion and includes the repayment of about $2.3 billion of Brakes Group’s financial debt.
In fiscal 2015, Brakes Group’s generated revenues of nearly $5 billion, a 6.5% increase from the previous fiscal year. Brakes Group supplies more than 50,000 products, including an extensive portfolio of more than 4,000 own-brand products.
At closing, the combined companies are expected to generate annualized sales of approximately $55 billion.
This deal was unanimously approved by Sysco’s board. 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.
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