Sysco ends attempt to merge with US Foods

Sysco said today that it would halt efforts to merge with US Foods after the deal was suspended last week by a federal court judge.

"After reviewing our options, including whether to appeal the Court's decision, we have concluded that it's in the best interests of all our stakeholders to move on," Sysco CEO Bill DeLaney said in a statement. "We believed the merger was the right strategic decision for us, and we are disappointed that it did not come to fruition. However, we are prepared to move forward with initiatives that will contribute to the success of Sysco and our stakeholders."

He pledged the company’s commitment to serving foodservice customers as a partner and to pursuing the interests of both customers and stockholders through supply-chain innovations.

Dropping the merger will cost Sysco $300 million in break-up fees to US Foods and $12.5 million in contract obligations to Performance Food Group. Sysco had agreed to sell some US Foods assets to PFG after a merger was consummated. The divesture of distribution houses in 11 markets was intended to allay regulators’ concerns that the combination of the Sysco, the industry’s No. 1 distributor, and US Foods, the No. 2 player, would constrain trade and elevate the prices paid by onsite foodservices and restaurants for supplies.

As a result of dropping the attempt at the $8.2-billion merger, Sysco said it would also redeem $5 billion in merger-related debt. The company agreed in December 2013 to buy US Foods from an investment group for $500 million in cash, $3 billion in Sysco stock and the assumption of $5 billion in debt.

US Foods had not publicly commented on Sysco’s decision as of posting time.

More From FoodService Director

Industry News & Opinion

Sidney Central School District in Sidney, N.Y., has received $58,783 from the state to improve its farm-to-school program, The Daily Star reports.

The grant will be used to aid in appointing a farm-to-school coordinator and assistant who will help source local farm products for 10 districts in the region for NY Thursday, an initiative where cafeterias attempt to serve meals made entirely by local ingredients every Thursday.

The funding is part of a $12 million award spread among 12 districts throughout the state by Gov. Andrew Cuomo.

Read the full story via...

Industry News & Opinion

Denver Public Schools has begun posting cooking videos on its Facebook page in an effort to promote the scratch-made meals served in its cafeterias, Denverite reports.

The video tutorials are set up in a similar way to Buzzfeed’s Tasty videos, showing a pair of hands from above as they prepare a meal to background music. The Colorado district promotes the videos with the hashtag #DPSDelicious.

Read the full story via .

Industry News & Opinion

Oregon State University will begin weighing waste in its food halls after receiving a $27,000 grant from the Oregon Department of Environmental Quality’s Materials Management program, the Gazette Times reports.

The school will use the money to install a computer-based system to help keep track of the waste .

Through the system, which includes a scale and a camera, staff will be able to weigh leftover food and take a photo of it before it’s discarded.

After reviewing the data collected, school officials say they may try to reduce portion sizes, alter purchases or...

Sponsored Content

From T. Marzetti® Foodservice.

If the current culinary interest in yuzu is any indication, today’s diners are seeking fresher flavors and cleaner eats. Yuzu, a bumpy, big-seeded citrus fruit, is turning up regularly as a tart and tangy ingredient in appetizers, salad dressings and marinades due to its nutritional benefits and tasty flavor.

Here’s how operators can combine seasonal ingredients such as yuzu with other clean label meal components for an easy way to bring health and flavor to the top of the menu.

Healthy and delicious

It’s no secret that diners want...

FSD Resources