Food distribution giant finalizes $3B deal, makes another acquisition

sysco

Sysco Corp. acquired Supplies on the Fly on July 1. Sysco had helped develop the company starting in 2009.

via Jack Witthaus, Houston Business Journal

A food distribution giant just got bigger with two deals.

Houston-based Sysco Corp. (NYSE: SYY) on July 5 completed its $3.1 billion acquisition of London-based Brakes Group, a European foodservice distributor, according to a release. Combined, the companies’ annualized sales are pegged at $55 billion.

Brakes Group CEO Ken McMeikan will continue serving in his position, according to a release.

Sysco expected the acquisition to be finalized sometime in July after receiving the OK from the European Commission, which unconditionally cleared on June 9 the acquisition of Brakes Group from Boston-based Bain Capital Private Equity.

Sysco’s current footprint includes operations in the U.S., Canada, Ireland, Northern Ireland and the Bahamas, as well as joint ventures in Mexico and Costa Rica. Brakes Group has operations in the U.K., Ireland, France, Sweden, Spain, Belgium and Luxembourg. The deal positions Sysco for potential future expansions in those markets as well.

Last week, Sysco announced a much smaller acquisition of Kennesaw, Georgia-based Supplies on the Fly for an undisclosed amount, according to a July 1 press release.

Sysco helped develop Supplies on the Fly in 2009 after entering into an agreement with Instawares Holding LLC, the former owner of the company, to create suppliesonthefly.com. In the agreement, Sysco had the option of purchasing the entire equity interest in Supplies on the Fly, a move it made last week. Supplies on the Fly provides restaurant equipment and other supplies to Sysco customers.

Craig Callaway, CEO of Supplies on the Fly, will keep his position, and Sysco plans to retain all current employees of Supplies on the Fly.

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