Sysco to Acquire Additional Assets in Montreal and Ireland

HOUSTON (October 22, 2012 - Globe Newswire)—Sysco Corporation announced that it has agreed to acquire the assets of Distagro, the foodservice division for Montreal, Quebec-based grocery retailer Metro Richelieu Inc., marking the second international acquisition in the past several weeks for North America's leading foodservice distributor.

Sysco also closed on the purchase of the foodservice distribution arm of Ireland-based produce company Keelings Foods on October 3. While the specific financial terms of the two acquisitions were not disclosed, the combined annual sales of the entities approach $400 million.

The acquisition of Distagro's foodservice division, which is subject to the usual conditions including Canadian regulatory approval, is designed to complement Sysco's growing presence in the competitive Quebec market. Distagro supplies food products to customers with operations in Quebec and Eastern Canada. Additionally, within the past 13 months in Quebec, Sysco has acquired Frank and Dino, a Montreal broadline specializing in Italian imports; Viandes St. Laurent, a Montreal meat processor and distributor; and En Gros Pierre, a Montreal seafood company.

In Canada, Sysco has broadline and specialty distribution facilities serving customers across Canada's 10 provinces and three territories.

The acquisition of Keelings' foodservice distribution business expands Sysco's presence and significantly strengthens its produce offering in Ireland. Having acquired Pallas Foods in 2009, Sysco acquired Crossgar Foodservice, a leading supplier in Northern Ireland, in August 2012.

The acquired Keelings business specializes in delivering fresh produce, employs 160 and has operations based in Dublin, Cork, Belfast and Wexford. The business will retain its existing brand identity and management team, and all employees will remain with the business.

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