KKR, CD&R-backed US Foods and Sysco Merger Terminated
June 30, 2015
The previously announced merger agreement between US Foods, a portfolio company of KKR and Clayton, Dubilier & Rice, and Sysco (NYSE: SYY) has been terminated following the Federal Trade Commission's request for a preliminary injunction to block the proposed combination. This action also terminates an agreement with Performance Food Group to purchase US Foods facilities in 11 markets. Sysco will pay break-up fees of $300 million to US Foods and $12.5 million to PFG. The transaction would have been valued at $8.2 billion, with Sysco offering $3.5 billion primarily in stock and also assuming approximately $4.7 billion in debt.