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Sysco To Buy US Foods In Distribution Merger

If approved by regulators, the merger is expected to bank Sysco $65 billion next year, up from $44 billion currently.

Sysco truck

Photo: karen_2873 (Flickr)

Sysco provides restaurants with a broad range of products, including paper goods and perishable and non-perishable food.

Sysco announced it will buy US Foods for $3.5 billion in cash and stocks, creating the largest food distributor in the United States.

The merger means Sysco will own over a quarter of the market share at 27 percent, with the next largest vendor owning only about 5 percent. As part of the deal, Sysco will absorb US Foods’ debt of $4.7 billion.

Sysco’s stock rose 9.7 percent Monday after news of the deal was released, giving the company a boost after high food prices and a weak economy have damaged stock prices.

Hotels, schools, hospitals and restaurants are all supplied by Sysco with a broad range of products, including paper goods and perishable and non-perishable food.

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Liz Leslie

Liz Leslie is a journalist based in Bloomington, Indiana. When she's not writing about food, she's likely eating food. Or dreaming about food.

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