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Sysco Acquires Produce Firm, Pursues Another



Sysco's FreshPoint unit acquired City Produce, Inc., and a related group of companies, which together comprise the largest independent produce distributor in the Austin, San Antonio, Corpus Christi and Harlingen, Texas, foodservice markets, the country's largest distributorship announced.

Sysco also said that its FreshPoint subsidiary has entered into a definitive agreement to acquire Thomas Brothers Produce, Inc., the largest independent produce distributor in the state of Oklahoma.

Terms of the transactions were not disclosed. The three acquisitions should boost Sysco's revenues this year by at least $132 million.

City Produce was founded in 1981 and is headquartered in Austin, with additional distribution facilities located in Corpus Christi, Harlingen and San Antonio. Led by president Steven Scruggs, who will remain in that position, the company employs approximately 150 associates.

City Produce distributes to a variety of foodservice markets throughout central and south Texas including Austin, College Station, Corpus Christi, Del Rio, Kerrville, Killeen, New Braunfels, San Antonio, San Marcos, Temple, Waco, Victoria, Laredo, McAllen, Brownsville, and Harlingen. For calendar year 2005 City Produce generated approximately $43 million in sales.

Based in Oklahoma City with a satellite facility in Tulsa, OK, Thomas Brothers Produce was founded in 1999 by Mike Thomas, who will continue in his role as president of the company. In its seven years of existence, Thomas Brothers Produce has grown to become Oklahoma's largest distributor of produce to the foodservice industry. The company employs approximately 125 associates and generated sales of approximately $34 million in calendar 2005.

Brian M. Sturgeon, vice president of Sysco and president and chief executive officer of FreshPoint, said, "The addition of City Produce and Thomas Brothers is a significant milestone for FreshPoint. Both of these companies are market leaders and will allow our distribution reach to expand into the Oklahoma, Arkansas and central Texas foodservice markets."

"Becoming a member of Sysco's FreshPoint distribution network is a wonderful opportunity for our company and our customers," said Scruggs. "Sysco and FreshPoint will provide us with the ability to expand our product offerings, as well as the support, opportunities and competitive advantages that make Sysco the number one foodservice distributor in North America." Thomas observed, "SYSCO's commitment to and success in expanding its market share in the fresh produce segment is well documented. Our operation has experienced tremendous growth since our founding and we are excited about joining the FreshPoint family of companies and the opportunities it presents to our employees and customers."

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