Blog: Mega deal set to shake up US foodservice distribution
Dean Best | 10 December 2013
Off our beat but food manufacturers serving the US foodservice sector should note the proposed takeover of US Foods by rival Sysco.
The companies are the two largest foodservice distributors in the US and Sysco said the deal, if approved, will create a business generating annual sales of around US$65bn.
The takeover, if backed by anti-trust regulators (and that, according to some, could be a challenge), will see Sysco pay US private-equity firms KKR and Clayton, Dubilier & Rice a mix of cash and stock for US Foods.
The private-equity firms paid Dutch grocery retail giant Ahold $7.1bn for US Foods in 2007.
Sysco's largest customers include quick service restaurant chains like McDonald's and Wendy's but it has around 425,000 clients across the US.
Both Sysco and US Foods serve a wide range of customers, including restaurants and hotels but also healthcare and educational establishments.
The combined entity is expected to account for around 25% of sales in the national US foodservice sector, potentially presenting Sysco with greater purchasing power when dealing with its suppliers.
Industry watchers are split on whether US regulators will ask Sysco to offload some assets to get the deal through but, even if the company has to sell some bits of its business, the transaction looks set to create a powerful operator in the channel.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Interview: Sir Kensington's on sale to Unilever
- Interview: "Disruptive" snack brand Hippeas
- Column: Why snacking is the new meal
- Analysis: Post discusses rationale for Weetabix
- Nestle Q1 update: four things to learn
- Tyson shops Sara Lee bakery, Kettle and Van's
- Unilever buys US condiments maker Sir Kensington's
- Icelandic to sell Saucy Fish Co. owner Seachill
- Tyson to buy burger-to-entree firm AdvancePierre
- Nestle to cut UK confectionery jobs