Exclusive: Sysco, US Foods offer to divest 11 facilities to win FTC deal approval

http://ift.tt/eA8V8J Food distributor Sysco Corp (SYY.N) and its biggest rival, US Foods Inc (USFOO.UL), have offered to sell a smaller competitor 11 facilities in order to convince skeptical antitrust regulators to approve their $3.5 billion merger, a source briefed on the matter told Reuters. The deal, proposed in December 2013, is seen as problematic because Sysco and US Foods are the only companies with the geographic reach to offer nationwide contracts to deliver a wide range of goods to customers ranging from hotel chains to hospitals to fast food chains and fine restaurants. To overcome Federal Trade Commission concerns, the companies have offered to sell 11 distribution centers with $5 billion in sales in hopes of building Performance Food Group into a national competitor, essentially replacing US Foods, according to the source, who spoke on condition of anonymity. Sysco executives and FTC officials are scheduled to meet over the next two weeks to discuss whether the offer would be enough to win regulatory approval.



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