Sysco’s purchase of U.S. Foods stirs anti-trust talk

12/12/2013 03:07:00 PM
Coral Beach

“In certain regions the combined market share is going to raise some flags,” Andrew Wolf told The Times. “They’re going to have to make some divestitures.”

DeLaney said the two companies do have some overlap in their distribution operations as well as sales and marketing staffs, but there are no plans to close locations or reduce staff at this time. He said the goal is to retain all customers of both entities, and that will take a lot of staff and infrastructure.

“There is some overlap, ... but maybe not as much as you might think,” DeLaney said.

After the transaction, equity holders of U.S. foods will own about 13% of Sysco’s shares. Representatives from each of U.S. Foods’ majority stockholders will join Sysco’s board.

Officials predict the combined companies will have annual sales of about $65 billion and generate operating cash flow of about $2 billion.

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Kurt J    
Virginia  |  December, 17, 2013 at 05:00 PM

I've felt if someone could do it better than SYSCO or USFoods the door is wide open. Neither company produces a warm feeling among their clients, but they get the job done. So when people complain, I say just start a new company and do it better, there are thousands of businesses that have their eye out for a new distributor.

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