Sysco Continues Expanding in Canada
U.S. food service distributor Sysco (NYS: SYY) has agreed to buy the assets of Distagro, a division of Canadian grocery retailer Metro Richelieu, Sysco announced yesterday.
This is the second foreign buyout Sysco has made recently. On Oct. 3, it closed on its purchase of the food service distribution division of Ireland-based Keelings Foods.
Sysco did not release the costs of the acquisitions, but said the combined annual sales of the entities "approach $400 million." CFO Chris Kreidler said the company's goal is to increase sales "by one-half percent to 1 percent annually through acquisitions. ... To date, in fiscal year 2013, Sysco has agreed to acquire businesses that, in the aggregate, exceed $500 million in annual sales."
Distagro is the fourth Canadian food service acquisition Houston-based Sysco has made in the last 13 months. Keelings is the third acquisition Sysco has made in Ireland.
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