Posted: Dec 9, 2013 6:53 AM
Updated: Dec 9, 2013 6:54 AM
HOUSTON (AP) Sysco is buying the food distributor US Foods for about $3.5 billion in cash and stock.
Houston's Sysco will pay $3 billion in common stock and $500 million in cash. It will also assume or refinance about $4.7 billion in debt.
That puts the total value of the deal at about $8.2 billion. When the acquisition closes, Sysco will have annual sales of about $65 billion.
US Foods shareholders will own about 87 million shares, or about 13 percent, of Sysco's common stock. Representatives of majority shareholders at US Foods, based just outside of Chicago in Rosemont, Ill., will join Sysco's board.
Shares of Sysco Corp. jumped 30 percent in premarket trading to $44.35. That would be an all-time high if it holds when the market opens.