BelGioioso - Burrata & Stracciatella
Black Kassel - Snack like Royalty
Sysco Buys European Foodservice Distributor Brakes Group in $3 Billion Deal

Sysco Buys European Foodservice Distributor Brakes Group in $3 Billion Deal

Monday, February 22nd, 2016

Sysco is targeting international markets for future growth with the purchase of London-based foodservice distributor Brakes Group, valued at approximately $3.1 billion, including $2.3 billion in debt.

This acquisition, which comes just eight months after Sysco’s failed merger with US Foods, would expand the company’s presence in the United Kingdom, Ireland, and further into Europe. Other opportunities for further expansion in Europe were also a strong possibility, Sysco said.

Shortly after the transaction was announced, shares in Sysco fell approximately 6% in midday trading on Monday to $42.15. According to a Reuters report, analysts “questioned the timing of the deal, given the volatility in stock markets, and the price, 12 times Brakes’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).”

Source: Google Finance

Originally a poultry supplier when it was founded in 1958, Brakes Group has grown to supply fresh, refrigerated and frozen foods, as well as non-food products and supplies, to more than 50,000 foodservice customers.

In fiscal 2015, Brakes Group’s revenues were reported at nearly $5 billion (3.3 billion British pounds), increasing 6.5% from its previous fiscal year.

Brakes Group's Areas of Business (UK & Ireland, Continental Europe, Sweden)

Brakes Group will operate as a standalone company within Sysco, and its management structure and employees will remain unchanged.

Bill DeLaney, CEO, Sysco“We have complete confidence that [Brakes Group CEO Ken McKeikan’s] team will achieve its planned business objectives,” said Bill DeLaney, Sysco’s CEO. “We expect to augment this growth by leveraging our combined scale to provide our customers with an even more competitive offering. We look forward to servicing customers across Europe and beyond, with the goal to be their most valued and trusted business partner.”

Both companies combined expect to generate annualized sales of approximately $55 billion. They expect the transaction to be completed before the end of Sysco’s fiscal year in July 2016.

SyscoBrakes Group

BelGioioso - Burrata & StracciatellaBlack Kassel - Snack like Royalty

Have a new product, press release or story idea?

Let us know

In This Story

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals...

At its core, Brakes Group has two main passions: food and service. It is these passions that have made it the market leader in UK foodservice, and the second largest foodservice provider in both...

Marin French Cheese Introduces Petite Mustard Brie

The cheesemaker's latest line extension embraces a piquant flavor trend.
View Press Release

Specialty Food Association Winter Fancy Food Show Features Innovation and Disruption

The fastest-growing segment of the food industry, specialty food, is gathering in San Francisco, California, for another great show.
View Press Release

Ithaca Cold-Crafted Closes $2.7 Million In New Growth Capital From LiDestri Food and Drink

The brand is currently available at more than 3,000 retail doors across the U.S., including Wegmans, Publix, Stop & Shop, Shoprite, and The Fresh Market.
View Press Release

Califia Farms Further Diversifies Plant-Based Offerings With Launch Of New Oatmilk Line

The plant-based beverage company deepens its commitment to craft and plant-based nutrition.
View Press Release

Dewey's Bakery Expands Product Portfolio

The company introduces its new Tiki Bar collection, which brings the excitement of the seasons to the cookie aisle.
View Press Release

Brand Spankin’ New: Cypress Grove Launches Fresh Goat Cheese Cups and “Cheeseboards for Dinner” Campaign

The Humboldt County-based cheese producer making award-winning and world-renowned cheeses since 1983, will be showcasing a new addition to its fresh goat cheese line at this year’s Winter Fancy Food Show.
View Press Release