Terms of the transaction, which is subject to successful completion of Sysco's due diligence, were not disclosed.
This is the first intended acquisition revealed by the No.1 distributorship this year, following five acquisitions last year.
Desert Meats & Provisions was founded in 1978 by Harlon Unruh, who continues to serve as the company's ceo. The company operates from a 25,000-square-foot, state-of-the-art, USDA-inspected processing and distribution facility in Las Vegas, distributing more than 1,200 products, including fresh and frozen specialty and variety meats, aged beef, pork, lamb, veal, poultry and processed meat.
The company's diverse base of customers includes more than 200 premier Las Vegas mega-resorts, hotel-casinos, and fine "white tablecloth" restaurants. For its fiscal year ended Dec. 31, 2005, the company generated sales of approximately $55 million.
Larry J. Accardi, executive vice president of contract sales and president of specialty distribution companies at Sysco, observed, "The acquisition of Desert Meats & Provisions is a logical geographic expansion of Sysco's specialty meat strategy. The combined purchase between our Newport Meat operation and our broadline company in Las Vegas will leverage Newport Meat's current distribution efforts in the Las Vegas market, while also supporting Sysco Food Services of Las Vegas with enhanced procurement capabilities to further grow their center-of-the-plate offerings."
Accardi added that the newly acquired company will report within Sysco's specialty companies segment through Tim Hussman, the ceo and president of Newport Meat Company, a Sysco subsidiary located in Irvine, CA.
In addition, an advisory board consisting of Hussman, Unruh and David DeVane, president and ceo, Sysco Food Services of Las Vegas, will have oversight of the acquired company's strategic direction and go-to-market approach to maximize collaboration in the Las Vegas market.