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Sysco and US Foods Still Reeling From Merger Collapse

Both distribution companies are busy once again

By Nick Powills1851 Franchise Publisher
SPONSORED 10:10AM • 03/07/16
Sysco Corp and US Foods Inc., have been trying to put their botched merger behind them. The two distribution giants have had a number of acquisitions since then to make up for lost time. Sysco recently bought North Star Seafood Inc., and US Foods acquired Massachusetts-based Cara Donna Provision Co.
 
Along with these acquisitions, the companies have evolved their businesses. Sysco announced a three-year plan to reduce its workforce by 2 percent and US Foods filed a registration statement for an initial public offering.
 
“This period over the past couple of years was a pretty big distraction for both companies. So many things were put on hold due to the merger discussion,” Bob Sala, an industry consultant and former founder and CEO at Distribution Market Advantage. “What you’re seeing now is that both companies are getting back to the basics of broad line distribution.”
 
Sala went on to say these acquisitions were designed to help the companies rebuild after the merger collapsed.
 

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