Give Now  »

Sysco To Buy US Foods In Distribution Merger

Sysco truck

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.

Read More:

Support For Indiana Public Media Comes From

About Earth Eats

Harvest Public Media