Sysco Corp., the Houston-based food distribution giant, announced plans Monday to buy European foodservice distributor Brakes Group from Bain Capital in a deal valued at $3.1 billion.
The deal includes the repayment of $2.3 billion of Brakes Group’s debt.
“We look forward to welcoming Brakes Group, its 15,000 employees, and Ken McMeikan and his highly respected leadership team to the Sysco family of companies,” Sysco CEO Bill DeLaney said in a statement. “This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time.”
The deal comes several months after Sysco’s planned acquisition of US Foods collapsed under the weight of government opposition. Sysco, still intent on expanding its reach, is now looking at global acquisitions to continue its growth.
The private-equity group Bain Capital acquired Brakes Group in 2007. Last year the distributor had revenues of $5 billion. It has 50,000 customers and operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg.
Once the deal is closed, the combined companies, Sysco and Brakes, are expected to generate annual sales of $55 billion. Sysco is buying Brakes for an acquisition multiple of 12 times the company’s 2015 EBITDA, or earnings before interest, taxes, depreciation and amortization.
“It’s very exciting for Brakes Group to be joining the recognized worldwide leader in foodservice distribution,” McMeikan said in a statement. “Last year we said we would look for the best strategic option for Brakes Group’s next stage of development. We are delighted to have now concluded this process by joining Sysco.”
Contact Jonathan Maze at [email protected]
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