) has signed an agreement to acquire Ireland-based private
foodservice supplier Crossgar Foodservice. Sysco has however not
disclosed the financial terms of the deal, which is yet to receive
Competition Authority approval in the Republic of Ireland.
The acquisition of Crossgar Foodservice will not only strengthen
Sysco's operations in Ireland, but will enhance the company's
portfolio with wider products including poultry, meat, chilled,
frozen, grocery and non-food items. The acquisition was through
Sysco's subsidiary Pallas Foods, which the company acquired in
2009. Like Pallas Foods, Crossgar Foodservice will also retain its
brand and management team.
Some other recent acquisitions by Sysco include the specialty
food importer European Imports, Ltd. at the end of February.
European Imports operates as an independent business and retains
its management as well as its employees. Further, being well
positioned in the specialty import products segment, European
Imports will complement Sysco's broad-line and specialty
Last month, Sysco has delivered third-quarter 2012 earnings of
49 cents per share, which exceeded the Zacks Consensus Estimate of
42 cents on a better-than-expected top-line. It also exceeded the
prior-year earnings of 48 cents per share.
Sysco's sales also advanced 7.6% on a year-over-year basis, to
$10.5 billion in the third-quarter of 2012. The acquisition added
0.7% to sales growth while unfavorable currency translation
decreased sales by 0.2%. Sales slightly beat the Zacks Consensus
Estimate of $10.47 billion on better volumes.
Sysco, which competes with
United Natural Foods, Inc.
), is the global leader in selling, marketing and distributing food
products, and operates 177 distribution facilities serving
approximately 400,000 customers.
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