Sysco to divest US Foods distribution centers to Performance Food
Food distributor Sysco has agreed to divest 11 US Foods distribution centers to Performance Food Group.
The move is in line with Sysco's plans to win FTC approval for its proposed merger with US Foods announced in December 2013.
The transaction includes the sale of US Foods facilities in Corona, California; Denver, Colorado.; Kansas City, Kansas.; Phoenix, Arizona; Salt Lake City, Utah; San Diego, California; San Francisco, California; Seattle, Washington; Cleveland, Ohio; Las Vegas, Nevada; and Minneapolis, Minnesota.
Performance Food Group CEO George Holm said: "The collection of distribution centers and other assets that Performance Food Group will acquire along with related support services agreements will enable us to compete effectively for national broadline foodservice customers.
"We are excited by the opportunities for growth presented by this transaction and are confident that we will effectively execute our plans to become one of the country's premier broadline distributors serving customers coast to coast."
Following the sale of these facilities, Sysco anticipates to achieve net annual synergies of at least $600m in four years.
US Foods' assets will be transferred to Performance Food, under a multi-year transition services agreement between Sysco and Performance Food.
Image: Sysco sells, markets and distributes food products. Photo: courtesy of Serge Bertasius Photography / freedigitalphotos.