NEW YORK (AP) — Sysco said Monday that it will pay about $800 million to buy rival European food distributer Brakes Group, a deal which will help the company expand in the region.
The companies valued the deal at $3.1 billion, when $2.3 billion of debt is included. Houston-based Sysco is purchasing Brakes Group from its private equity owner, Bain Capital.
Sysco sells and distributes food products to hospitals, schools and restaurants in the U.S., Canada and Ireland. Brakes Group distributes food to restaurants, bars, caterers and other businesses in Belgium, England, France, Ireland, Luxembourg, Spain and Sweden.
After the deal closed, the combined company will have annual sales of about $55 billion.
Shares of Sysco Corp. fell $2.90, or 6.4 percent, to $42.09 in afternoon trading Monday.