Sysco to Sell Assets Worth 5 Billion Dollars to Complete US Foods Merger
HOUSTON, TX - A New York Post report released today claims that Sysco is selling assets worth $5 billion to Performance Food Group in an effort to win regulatory approval from the Federal Trade Commission (FTC). This is equal to approximately one-quarter of US Foods’ revenue.
According to New York Post, Sysco had initially agreed to sell assets with $2 billion of revenue in the December 2013 merger agreement.
Rumors had initially suggested that aside from Performance Food Group, Sysco had also been in negotiations with Reinhart Foodservice and Gordon Food Service to buy assets.
Last month, Sysco announced that its impending merger with US Foods would be delayed as a result of the FTC discussions, but the company is still expecting to complete the merger before the end of the first quarter of 2015.
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