Sysco has announced that it will acquire competing food distributor US Foods for about $3.5 billion in cash and stock, reports the Associated Press. Under the terms of the agreement announced Monday, Houston’s Sysco will pay $3 billion in common stock and $500 million in cash. It will also assume or refinance about $4.7 billion in debt.
Bill DeLaney, Sysco president and chief executive officer, will lead the combined company, which will continue to be named Sysco and headquartered in Houston, Texas. At closing, Sysco will have estimated annual sales of approximately $65 billion, the company announced in a statement.