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Will see changes in Mexico
Sysco Corporation (NYSE:SYY), North America’s leading foodservice distributor, today announced that it has reached an agreement to buy 50 percent of Pacific Star Foodservice, a leading foodservice distributor in Mexico whose majority equity shareholder is privately-owned Arancia, S.A. de C.V. Financial terms were not disclosed.
Pacific Star has operated since 1989 with distribution centers servicing customers in the major metropolitan areas of Mexico City, Guadalajara, Monterrey and Tijuana. It primarily services chain accounts, including fast food and casual dining restaurants, casinos, theme parks, movie theaters and hotels throughout Mexico.
Pacific Star is Sysco’s second Latin America market investment in 2014. In June, Sysco acquired a 50 percent ownership stake in Mayca Distribuidores, S.A., a leading foodservice distributor in Costa Rica.
As of October 2014, Pacific Star had 534 employees. All, including the management team, will remain in place at the closing of the transaction.
“We are pleased to reach this agreement to become joint partners with Sysco, North America’s leader in foodservice distribution,” said Armando Beltrán, CEO of Pacific Star. “Pacific Star’s customers and employees will benefit from the operational expertise, product assortment and immense world-class capabilities that Sysco can offer.”
“Sysco is excited to partner with Pacific Star because of its reputation for customer service and the success in growing its business in Mexico,” said Kent Humphries, Sysco’s senior vice president-International Foodservice Operations. “This partnership fits our international expansion strategy and reinforces our leadership position in North America with our operations in the United States and Canada. By combining the strengths of Pacific Star and Sysco, we can better serve customers in the region, continue to grow the business and provide value to our shareholders.”
The transaction requires a regulatory review by Mexico government authorities, after which it will close. When completed, Mexico becomes the sixth country outside the United States where Sysco will have broadline foodservice operations. The others are in the Bahamas, Canada, Costa Rica, Ireland and Northern Ireland. Sysco also has subsidiaries that serve customers in more than 90 countries across the globe.
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 194 distribution facilities serving approximately 425,000 customers. For Fiscal Year 2014 that ended June 28, 2014, the company generated sales of more than $46 billion.
