Us Foods - Sysco Buys

Sysco proposed selling 11 US Foods distribution centers to Performance Food Group (PFG) to appease regulators. The FTC rejected this, stating it would not allow PFG to effectively replace US Foods as a competitor. 3. Legal Proceedings and Ruling

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.

The where competition was most heavily impacted. How US Foods performed after staying independent. Judge Explains Reasons for Blocking Sysco-US Foods Merger sysco buys us foods

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

Sysco officially abandoned the merger on June 29, 2015. Sysco proposed selling 11 US Foods distribution centers

The court decided that the merger was likely to cause the type of market concentration that antitrust laws intended to prevent. 4. Consequences of the Terminated Merger

Sysco and US Foods were the top two broadline food distributors in the US, specializing in supplying food and supplies to restaurants, hospitals, schools, and hotels. Legal Proceedings and Ruling US Foods later pursued

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