Big food company Sysco is buying rival big food company US Foods for $3.5 billion in stock and cash, The New York Times reports.
The two food distributing companies agreed on a deal where Sysco will pay $3 billion in stock and $500 million in cash, while US Food owners will own 13 percent stake of the combined company. The deal will also have Sysco assume $4.7 billion of US Foods' debt, increasing the deal's value to $8.2 billion.
So what does this mean for big food? Sysco will maintain its number-one status as biggest food distbutor, having taken out number two in the buyout. It's set to become the reigning giant of food distribution, with an expected annual revenue growth of 46 percent, The New York Times reports. That's $65 billion a year, Sysco projects, and one gigantic food company selling meat, dairy, and produce to more than 500,000 customers in the States.