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Post by dilligaf on Dec 9, 2013 12:44:00 GMT -6
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Post by 1NAMillion on Dec 9, 2013 12:45:51 GMT -6
The page isnt available
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Post by dilligaf on Dec 9, 2013 12:53:45 GMT -6
heres another www.reuters.com/article/2013/12/09/sysco-acquisition-idUSL3N0JO32920131209 Sysco to pay $3.5 bln, take on $4.7 bln of debt
* Sysco CEO says expects anti-trust scrutiny
* Sysco shares rise as much as 25 pct to record
By Siddharth Cavale
Dec 9 (Reuters) - Sysco Corp will buy US Foods Inc for about $3.5 billion from its private equity owners in a deal that will combine the top two U.S. food distributors and create a company commanding about a quarter of the $235 billion North American market.
Sysco, whose shares jumped about 25 percent to a record high in early trading, will also assume US Foods' debt of about $4.7 billion as it combines its supply chain expertise with the strong consumer-facing technologies of US Foods.
Shareholders of US Foods, owned by affiliates of private equity firms Clayton, Dubilier & Rice and KKR & Co, will own about 13 percent of Sysco after the closing of the deal, which creates a company with revenue of $65 billion.
"Combining and maximizing the significant strengths of two outstanding companies is certain to be of tremendous advantage in supporting our customers," US Foods Chief Executive John Lederer said in a statement on Monday.
Sysco Chief Executive Bill DeLaney, speaking on a conference call with analysts, said Sysco now has an 18 percent share of the market, while US Foods has 9 percent.
DeLaney said the Federal Trade Commission, which rules on antitrust matters, would certainly scrutinize the deal but he noted that there were about 15,000 private companies involved in the U.S. food distribution industry.
Sysco and US Foods distribute foods to restaurants, hotels, hospitals, schools and other institutions.
DeLaney said Sysco was attracted by US Foods' customer-facing technologies, such as standardized ordering software and mobile apps. "We are particularly strong in the supply chain side of things," DeLaney said.
Clayton, Dubilier & Rice and KKR acquired the former U.S. Foodservice from Dutch grocer Ahold for $7.1 billion in 2007.
Sysco said the deal would add to earnings immediately after closing, probably in the third quarter of 2014.
Goldman Sachs & Co is financial adviser to Sysco, while Wachtell, Lipton, Rosen & Katz and Arnall, Golden & Gregory LLP are legal advisers.
Simpson Thacher & Bartlett LLP and Debevoise & Plimpton LLP are legal advisers to US Foods, which did not identify a financial adviser.
Sysco shares were up 12 percent at $38.31 in late morning trading on the New York Stock Exchange. |
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Post by greekgod on Dec 9, 2013 20:02:24 GMT -6
^^^
Hopefully it be a plus for the workers, not only for the shareholders!
g
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Post by 1NAMillion on Dec 10, 2013 6:08:22 GMT -6
ahhh but what does that mean for Streator and Streators workers?
ty for the 2nd post
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Post by Blagoavitch on Dec 10, 2013 7:27:44 GMT -6
Scary. If two businesses become one, they will not need ALL the fleet, employees and distribution centers as a consolidated company.
I also fear the day we have fully automated drivers. Autonomous cars are in their infant stages, but on the road already.
Just imagine our economy if 90 percent of the truckdrivers become unemployed nationwide.
If big business can do it, they certainly will. They will have to, to save money and stay in business, just as they have with automation in factories and outsourcing.
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Post by dilligaf on Dec 10, 2013 9:01:49 GMT -6
ahhh but what does that mean for Streator and Streators workers? ty for the 2nd post IDK...but I hope all goes well for our local warehouse and its workers.... The place has been bought and sold in the past and sometimes the only change seen at the local level is the name on the uniform...BUT this merge is much larger than anything in the past...This is #1 merging with #2 which is huge... IDK what the buissness plan's are for this new company but I can see there are quite a few over lapping warehouses in the same area... Chicago,Streator,Lincoln,Danville,Indianapolis,Milwaukee,Des Moines,Iowa City,St Louis... Lets hope the new company has positive plans for the Streator facility and employees |
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Post by BEARS FAN on Dec 16, 2013 11:30:47 GMT -6
All Orders Will Be Dispatched From CHINA!!!!(Sarcasm)....
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