Sysco Buys Us Foods (2024)

Sysco paid a $300 million break-up fee to US Foods and an additional $12.5 million to PFG.

Sysco officially abandoned the merger on June 29, 2015. sysco buys us foods

In December 2013, , the largest broadline food distributor in the United States, announced a definitive agreement to acquire its largest competitor, US Foods , for approximately $8.2 billion, including assumed debt. The merger intended to create a dominant player with a 75% market share in national broadline distribution. However, the deal was terminated in June 2015 following a Federal Trade Commission (FTC) lawsuit and a subsequent federal court ruling that concluded the merger would significantly harm competition in the foodservice industry. 1. Context and Strategic Rationale Sysco paid a $300 million break-up fee to

Sysco and US Foods were the top two broadline food distributors in the US, specializing in supplying food and supplies to restaurants, hospitals, schools, and hotels. The merger intended to create a dominant player

Sysco proposed selling 11 US Foods distribution centers to Performance Food Group (PFG) to appease regulators. The FTC rejected this, stating it would not allow PFG to effectively replace US Foods as a competitor. 3. Legal Proceedings and Ruling

Including litigation and planning, the failed merger cost Sysco approximately $693 million.