Sysco Buys Us Foods Review

Announced on Dec. 9, 2013, the deal was valued at $3.5 billion in equity plus billion in net debt.

In December 2013, , the largest broadline food distributor in the United States, announced a definitive agreement to acquire its largest competitor, US Foods , for approximately $8.2 billion, including assumed debt. The merger intended to create a dominant player with a 75% market share in national broadline distribution. However, the deal was terminated in June 2015 following a Federal Trade Commission (FTC) lawsuit and a subsequent federal court ruling that concluded the merger would significantly harm competition in the foodservice industry. 1. Context and Strategic Rationale sysco buys us foods

US Foods later pursued a successful Initial Public Offering (IPO) in May 2016, returning as an independent public company. 5. Summary Table Transaction Value ~$8.2 Billion Combined Sales Estimated $65 Billion Annually Market Share Impact 75% of National Broadline Distribution FTC Action Sued to Block, Feb 19, 2015 Final Outcome Terminated, June 29, 2015 Termination Fees $312.5 Million+ If you're interested, I can provide more details on: The FTC's legal arguments against the merger. Announced on Dec

The where competition was most heavily impacted. How US Foods performed after staying independent. Judge Explains Reasons for Blocking Sysco-US Foods Merger The merger intended to create a dominant player

Sysco believed the merger was a necessary step for modernization and better customer service, while opponents feared massive concentration. 2. Regulatory Opposition (FTC)

The complaint alleged that restaurants, hotels, and schools would face higher prices and lower quality service due to the lack of competition.

Sysco paid a $300 million break-up fee to US Foods and an additional $12.5 million to PFG.