Sysco Buys Us Foods < Android >

The FTC estimated a combined entity would control 75% of the national market for broadline distribution services.

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

On February 19, 2015, the FTC sued to block the merger, arguing it violated antitrust laws. The FTC estimated a combined entity would control

The court found that the merger would eliminate head-to-head competition between the two biggest industry players. Furthermore, the judge argued that smaller competitors could not match the scale and service capabilities of the combined Sysco/US Foods. The court found that the merger would eliminate

Including litigation and planning, the failed merger cost Sysco approximately $693 million.

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

Sysco anticipated annual cost savings of at least $600 million within three to four years through improved supply chain efficiencies, merged merchandising, and reduced administrative overhead.