Bain Capital to sell Brakes Group to Sysco in $3.1B deal
February 23, 2016
Bain Capital Private Equity has entered an agreement to sell Brakes Group, a European foodservice distributor, to Sysco (NYSE: SYY) in a transaction worth roughly $3.1 billion, including the repayment of about $2.3 billion of Brakes Group’s debt. The deal will be financed with new debt, commercial paper and cash on Sysco's balance sheet. Upon the deal's closing, anticipated before the end of Sysco’s fiscal year in July, the combined companies are expected to generate annualized sales of around $55 billion. Unanimously approved by Sysco’s Board, the deal expands Sysco’s reach in Europe. Just last June, Sysco terminated an $8.2 billion merger agreement with fellow foodservice distributor US Foods due to regulatory concerns.