FDBusiness.com

Sysco to Purchase Brakes Group in $3.1 Billion Deal

 Breaking News
  • Danone Investing €280 Million at Evian Production Site Danone has opened a state-of-the-art production facility at Evian-les-Bains in the French Alps to support the future growth of evian, the international water brand that is sold in more than 140 countries. After six years of construction and transformation, the new look site combines greater operational efficiency, new technology and the highest quality processes with [...]...
  • European Grocery Shoppers Become Digital Infoseekers as Cost of Shopping Continues to Rise According to a survey of European shoppers by IRI, the big data and technology expert for consumer industries, the increasing use of the Internet, particularly via smart phones, is helping shoppers to find information on promotions and offers that will help them reduce the cost of their grocery shop. The survey, which was conducted among shoppers [...]...
  • California Almonds Continue to Inspire New Products Worldwide New data from Innova Market Insights reveals that California almonds were the number one nut used in new products worldwide in 2016, the tenth year that almonds have held the lead position for nuts used in new product introductions. According to the Innova Global New Products Report, almonds were featured in 38 percent of new [...]...
  • Premium Shelf Presentation – Marel Linerless Wraparound Labeler Consumers feel much more tempted to buy poultry meat products when trays are attractively packed and labeled. It is therefore of high importance to present a premium presentation. The new Marel M360 labeler will provide wrap-around labels with great shelf impact. Marel’s M360 standard wrap-around labeler makes use of the latest technologies in flexible linerless labeling. [...]...
  • Springhill Farms Upgrade – Biomethane to the Grid and CO2 to the Tomatoes In the heart of the English countryside, Springhill Farms makes the very most of agricultural waste. Upgraded biogas is injected into the national gas grid, while the carbon dioxide (CO2) by-product goes straight to the farms’ tomato greenhouses. The gas produced during anaerobic digestion consists roughly of 60 percent methane and 40 percent CO2. Until recently, [...]...

Sysco to Purchase Brakes Group in $3.1 Billion Deal

Sysco to Purchase Brakes Group in $3.1 Billion Deal
March 01
15:24 2016

Sysco Corporation, North America’s leading food service distributor, has agreed to acquire Brakes Group, a leading European food service distributor with operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg. Brakes Group is owned by Bain Capital Private Equity. The transaction is valued at approximately $3.1 billion (£2.2 billion) and includes the repayment of approximately $2.3 billion of Brakes Group’s financial debt.

The deal expands Sysco’s footprint in the UK and Ireland and further into Europe and positions the company for potential future expansion in these markets. The deal is subject to customary regulatory review by European Union competition authorities. The companies expect to complete the transaction before the end of Sysco’s fiscal year in July 2016.

Headquartered in London, Brakes Group will operate as a standalone company within Sysco. The Brakes Group business will continue to be led by chief executive officer Ken McMeikan. His management team and the rest of the employee base will remain in place.

Bill DeLaney, chief executive of Sysco Corporation.

Bill DeLaney, chief executive of Sysco Corporation.

Bill DeLaney, chief executive of Sysco, comments: “This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time. Beginning with a common customer-centric mindset, our companies are strategically aligned with compatible cultures and similar business models. We expect to retain key members of Brakes Group’s talented leadership team and to experience little distraction from integration given the minimal overlap of the businesses. Sysco’s management team remains confident in and committed to achieving our previously announced three-year plan financial objectives.”

“Since we bought Brakes Group in 2007, the business has been transformed with capital investment of more than 100 million British pounds in an e-commerce platform, multi-temperature distribution infrastructure, and customer service enhancements,” says Dwight Poler, managing director of Bain Capital Private Equity. “There is still a huge market opportunity ahead that I am confident Brakes Group is very well placed to deliver with Sysco.”

In 2015, Brakes Group’s increased revenue by 6.5% to $5 billion (£3.3 billion).

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 22, 2017Global Summit on Food & Beverages
  • September 26, 2017FHM2017
  • September 26, 2017POWTECH
  • October 7, 2017ORGANIC TRADE FORUM 2017 (Anuga)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements