Sysco is poised to complete the $8.2 billion merger with its closest rival, US Foods, but at a much stiffer price than expected, The Post has learned.
America’s biggest food-service provider, Sysco is selling assets worth $5 billion to Performance Food Group (owned by Steve Schwarzman-led Blackstone Group) to win regulatory approval, two sources said. That is equal to roughly one-quarter of US Foods’ revenue.
Sysco, in the December 2013 merger agreement, agreed to sell assets with $2 billion of revenue.
But the Federal Trade Commission has become concerned the two only truly national food service providers merging would be bad for customers, including schools and restaurants. So the FTC has pressured Sysco to sell enough assets to create a real national competitor.
Sysco, Blackstone and the FTC declined to comment.Read the Full Article