Sysco Corp announces
in Quebec and Ireland
Oct 23, 2012 10:06 AM
Sysco Corporation (NYSE:SYY) has agreed to acquire the assets of Distagro, the foodservice division for Montreal, Quebec-based grocery retailer Metro Richelieu Inc. This marks the second international acquisition in the past several weeks for the Houston TX-based foodservice distributor.
On October 3, Sysco closed on the purchase of the foodservice distribution branch of Ireland-based produce company Keelings Foods. While specific financial terms of the two acquisitions were not disclosed, combined annual sales of the entities approach $400 million.
“These acquisitions demonstrate Sysco’s commitment to pursue quality organizations that will help us better serve our customers, improve our service footprint, grow our business, and achieve our goal of increasing sales by one-half percent to 1 percent annually through acquisitions,” said Chris Kreidler, Sysco’s executive vice-president and chief financial officer. “To date, in fiscal year 2013, Sysco has agreed to acquire businesses that, in the aggregate, exceed $500 million in annual sales.”
The acquisition of Distagro’s foodservice division, which is subject to usual conditions including Canadian regulatory approval, is designed to complement Sysco’s presence in the Quebec market. Distagro supplies food products to clients with operations in Quebec and eastern Canada. Within the past 13 months in Quebec, Sysco has acquired Frank and Dino, a Montreal broadline specializing in Italian imports; Viandes St Laurent, a Montreal meat processor and distributor; and En Gros Pierre, a Montreal seafood company.
In Canada, Sysco has broadline and specialty distribution facilities serving Canada’s 10 provinces and three territories.
Acquisition of Keelings’ foodservice distribution business expands Sysco’s presence and strengthens its produce offering in Ireland. Having acquired Pallas Foods in 2009, Sysco acquired Crossgar Foodservice, a supplier in Northern Ireland, in August 2012.
The acquired Keelings business specializes in delivering fresh produce, employs 160, and has operations based in Dublin, Cork, Belfast, and Wexford. This business will retain its brand identity and management team, and all employees will remain with the company.
For more information, visit www.sysco.com.
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