Sysco Agrees to Acquire Brakes Group
$3.1 Billion Transaction to Bring European Foodservice Distribution Leader into Sysco’s Family of Companies
Transaction Expected to be Immediately Accretive to Sysco Earnings
HOUSTON, 2016-02-22 09:17 CET (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY), North America’s leading foodservice distributor, announced today that it has reached a definitive agreement to acquire Brakes Group, a leading European foodservice distributor with operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg. Brakes Group is owned by Bain Capital Private Equity. The transaction is valued at approximately $3.1 billion USD (approximately 2.2 billion British pounds) and includes the repayment of approximately $2.3 billion of Brakes Group’s financial debt.
Unanimously approved by Sysco’s Board of Directors, the transaction expands Sysco’s footprint in the UK and Ireland and further into Europe and positions the company for potential future expansion in these markets. The deal is subject to customary regulatory review by European Union competition authorities. The companies expect to complete the transaction before the end of Sysco’s fiscal year in July 2016.
Headquartered in London, Brakes Group will operate as a standalone company within Sysco. The Brakes Group business will continue to be led by chief executive officer Ken McMeikan. His management team and the rest of the employee base will remain in place.
“We look forward to welcoming Brakes Group, its 15,000 employees, and Ken McMeikan and his highly respected leadership team to the Sysco family of companies,” said Bill DeLaney, Sysco chief executive officer. “This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time. Beginning with a common customer-centric mindset, our companies are strategically aligned with compatible cultures and similar business models. We expect to retain key members of Brakes Group’s talented leadership team and to experience little distraction from integration given the minimal overlap of the businesses. Sysco’s management team remains confident in and committed to achieving our previously announced three-year plan financial objectives.”
“Since we bought Brakes Group in 2007, the business has been transformed with capital investment of more than 100 million British pounds in an e-commerce platform, multi-temperature distribution infrastructure, and customer service enhancements,” said Dwight Poler, a managing director of Bain Capital Private Equity. “There is still a huge market opportunity ahead that I am confident Brakes Group is very well placed to deliver with Sysco.”
“It’s very exciting for Brakes Group to be joining the recognized worldwide leader in foodservice distribution,” said McMeikan. “Last year we said we would look for the best strategic option for Brakes Group’s next stage of development. We are delighted to have now concluded this process by joining Sysco. Our mission is simple: to help businesses who serve food to thrive, and becoming part of the Sysco family will help us get closer toward achieving that great outcome for our customers, colleagues and suppliers. Similar to Sysco’s approach, Brakes Group serves thousands of customers across Europe every day, including pubs, restaurants, hotels, hospitals, schools, contract caterers and more. We have continued to flourish in recent years, and the significant investment that has been made in Brakes Group provides us with a very solid platform for further growth as part of Sysco.”
Brakes Group Operational Details
In fiscal 2015, Brakes Group’s revenues were nearly $5 billion (3.3 billion British pounds), a 6.5 percent increase from the previous fiscal year.
Brakes Group was originally established in 1958 by William, Frank and Peter Brake as a poultry supplier to caterers in Great Britain. It is a leading foodservice provider in Europe by revenues, supplying an extensive range of fresh, refrigerated and frozen food products, as well as non-food products and supplies, to more than 50,000 foodservice customers. The group of companies has leading market positions in the UK, France and Sweden, in addition to a presence in Ireland, Belgium, Spain and Luxembourg. Brakes Group supplies more than 50,000 products, including an extensive portfolio of more than 4,000 own-brand products. The innovative own-brand portfolio is valued by customers, having been developed over more than 55 years to assist professional caterers in producing high-quality meals. All products are delivered through Brakes Group’s industry-leading distribution networks.
Brakes Group companies include: Brakes, Brakes Catering Equipment, Brake France, Country Choice, Davigel, Freshfayre, M&J Seafood, Menigo Foodservice, Pauley’s, Wild Harvest and Woodward Foodservice.
“We have complete confidence that Ken’s team will achieve its planned business objectives,” DeLaney said. “We expect to augment this growth by leveraging our combined scale to provide our customers with an even more competitive offering. We look forward to servicing customers across Europe and beyond, with the goal to be their most valued and trusted business partner.”
Currently, Sysco’s family of foodservice distribution companies includes operations in the U.S., Canada, Ireland, Northern Ireland and The Bahamas, as well as joint ventures in Mexico and Costa Rica. Additionally, Sysco International Food Group (IFG) provides services to a number of multi-national contract customers conducting business in many different countries.
At closing, the combined companies are expected to generate annualized sales of approximately $55 billion. The purchase price, the refinancing of Brakes Group’s debt, and other fees and expenses in connection with the transaction are expected to be financed with new debt, commercial paper and cash on Sysco’s balance sheet. The acquisition of Brakes Group is expected to be immediately accretive to Sysco’s earnings.
The multiple for this transaction is approximately 12 times Brakes Group’s calendar year 2015 adjusted EBITDA of approximately 184 million British pounds. This multiple approximates Sysco’s current trading multiple. In addition, the expected internal rate of return for the transaction is approximately 13 percent.¹
“Our strong financial position and free cash flow allow us to pursue this proposed acquisition, while maintaining our current capital allocation strategy,” DeLaney said. “We remain committed to reinvesting in our business, growing our dividend, expanding our business through strategic acquisition and repurchasing shares opportunistically.”
¹ See reconciliation explanation below.
Deutsche Bank Securities, Inc. acted as the exclusive financial advisor to Sysco and is acting as sole lead arranger and sole book runner of the bridge financing for the acquisition. Freshfields Bruckhaus Deringer LLP and Ernst & Young LLP acted as legal and due diligence advisors, respectively, to Sysco. Goldman Sachs International and Baker & McKenzie LLP acted as financial and legal advisors, respectively, to Bain Capital Private Equity and Brakes Group.
Conference Call & Webcast
Sysco will host a conference call to discuss this transaction today at 10 a.m., Eastern. A live webcast of the call, a copy of this news release and a slide presentation will be available online at investors.sysco.com.
For purposes of public disclosure, Sysco plans to use the investor relations portion of its website as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. As a result, a live webcast of the call, a copy of this press release and a slide presentation, will be available online at investors.sysco.com. We encourage investors to consult that section of our website, or our investor relations app, regularly for important information about us.
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 196 distribution facilities serving approximately 425,000 customers. For Fiscal Year 2015 that ended June 27, 2015, the company generated sales of more than $48 billion. For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoCorporationor Twitter at https://twitter.com/Sysco. Important news regarding Sysco is available at www.sysco.com/investors. You can follow us at www.twitter.com/SyscoStockand download the Sysco IR App, available on the iTunes App Store and the Google Play Market. Investors are encouraged to read our news releases and filings with the Securities and Exchange Commission. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.
About Bain Capital
Bain Capital (www.baincapital.com) is one of the world's foremost privately-held alternative investment firms, with approximately $75 billion of assets under management in several pools of capital including private equity, venture capital, public equity, credit products and absolute return. Bain Capital's more than 400 professionals are collectively the single largest investor in all of its funds and its private equity team is dedicated to investing in and building its portfolio companies. Founded in 1984, Bain Capital has made private equity, growth, and venture capital investments in more than 450 companies around the world, and has deep experience across key vertical industries including consumer/retail, financial services and institutions, healthcare, industrials, and technology, media and telecommunications. Having first established its European presence 15 years ago, Bain Capital Private Equity now has local offices in London, Munich and Luxembourg.
About Brakes Group
Brakes Group (www.BrakesGroup.com) is a leading supplier to the foodservice sector in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg. The group comprises a family of specialist businesses which are able to deliver everything the caterer needs, including their very successful own brand ranges developed specifically for chefs. Employing 15,000 people, the Group supplies a diverse customer base, which includes pubs, restaurants and hotels, schools, hospitals and contract caterers. Brakes Group has developed a clear customer focus and a strong understanding of the needs of the foodservice sector providing innovative products and services and is committed to improving both the communities and environment its serves.
|Brakes Group and its Consolidated Subsidiaries|
|Reconciliation of EBITDA and Adjusted EBITDA|
|The Brakes Group reports its results using International Financial Reporting Standards (IFRS). In measuring its results, it uses both EBITDA and Adjusted EBITDA as profitability measures. EBITDA is defined as earnings before noncontrolling interests, taxes, interest, and depreciation and amortization. Adjusted EBITDA also excludes expenses referred to as Exceptional Items and includes pro forma adjustments for two recent acquisitions by annualizing the impact as if these operations had been a part of The Brakes Group's results for a full fiscal year. In calculating Adjusted EBITDA, management believes that removing these Exceptional Items and including pro forma adjustments for acquired operations, provides an important perspective with respect to expected results of The Brakes Group and provides meaningful supplemental information to both management and investors that removes these items which are difficult to predict and are often unanticipated and where historical results are not indicative of potential future performance. An analysis of any financial measure not based in IFRS should be used in conjunction with results presented in accordance with IFRS. In the table that follows, EBITDA and Adjusted EBITDA are reconciled to net loss for fiscal 2015.|
|Net earnings (loss)||£||(177.6||)|
|Depreciation and amortization||94.1|
|Exceptional Items (1)||57.8|
|Adjusted EBITDA excluding Exceptional Items||£||171.1|
|Pro forma adjustments for acquired operations||13.3|
|Adjusted EBITDA excluding Exceptional Items and including pro forma adjustments for acquired operations||£||184.4|
|(1) Adjustments for Exceptional Items include such items as Network Transformation Project costs, restructuring charges, non-routine informational technology projects, acquisition costs, business exit costs and other miscellaneous non-operating costs.|
Vice President, Communications
Vice President, Investor Relations
Brakes Group Media Contact:
Sarah West / Oliver Hughes
+44 20 7404 5959
Bain Capital Media Contact:
Ed Gascoigne-Pees / Hazel Stevenson
+44 20 3757 4984
Om Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York
+1 212 401 8700http://www.nasdaqomx.com
NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.
Følg saker fra Nasdaq GlobeNewswire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Nasdaq GlobeNewswire
Orion Biotechnology Canada Announces Closing of $5 Million Financing20.3.2018 22:03 | Pressemelding
OTTAWA, March 20, 2018 (GLOBE NEWSWIRE) -- Orion Biotechnology Canada Ltd today announced it has completed a US$5 million private placement financing late last year. "We are delighted to have secured the financial resources during this period of rapid expansion," said Mark Groper, President and Chief Executive Officer. "This financing allows Orion, as a private company, to continue development of its expanding pipeline of innovative products, including expansion of our infrastructure and human resources. It also provides external validation of the unique value proposition of the company's pipeline products which include candidates in the areas of Sexual Health, Oncology and Multiple Sclerosis. Orion is a research and development organization committed to developing novel approaches to address serious health issues. A prime example of this is the company's microbicide candidate, OB-001, which is being evaluated as a contraceptive gel which also prevents the transmission of HIV. "This is
Meltwater acquires privacy-by-design social data platform DataSift to strengthen its AI-driven analytics offering20.3.2018 18:45 | Pressemelding
SAN FRANCISCO, March 20, 2018 (GLOBE NEWSWIRE) -- Meltwater, a pioneer of media intelligence and now Outside Insight, today announced its acquisition of DataSift, a privacy-by-design data and analytics platform that extracts real-time insights from social and online data sources, while protecting user privacy. This acquisition, Meltwater's sixth in the last year, solidifies the company's emergence as a leading provider of AI-powered competitive intelligence through its Outside Insight platform. "By combining advances in machine learning and the vast amount of publicly available information on the internet, you can today understand and track Porter's Five Forces in real time to understand strategic opportunities and threats for your business. Executives that take advantage of this new opportunity create an unfair information advantage over those who don't," explained Jorn Lyseggen, CEO and founder of Meltwater. "DataSift has built a scalable platform that lets developers build data scie
VITEC Adds Powerful New Video Wall and DRM Functionality to EZ TV IPTV and Digital Signage Platform20.3.2018 17:00 | Pressemelding
SUNNYVALE, Calif., March 20, 2018 (GLOBE NEWSWIRE) -- VITEC, a worldwide leader in advanced video encoding and streaming solutions, today announced that its award-winning, enterprise-grade EZ TV IPTV and Digital Signage Platform can now manage and drive complex video wall setups and is interoperable with the latest content protection and DRM standards required by the leading services providers for IPTV deployments. These capabilities are fully supported through the EZ TV Platform, with DRM integration also available across VITEC's IPTV set-top-boxes, signage end-points, and the cutting-edge EZ TV IPTV mobile app. Attendees will see a live demonstration of the new EZ TV release at the 2018 NAB Show, April 9-12, at the Las Vegas Convention Center - booth SL6821. VITEC's video wall solution is designed to simplify deployment and management of projects involving IPTV, digital signage, and video wall content, while delivering a breathtaking visual experience. The new EZ TV video wall proces
Librestream Powers New Remote Assistance Service from Safran Helicopter Engines20.3.2018 16:00 | Pressemelding
WINNIPEG, Manitoba, March 20, 2018 (GLOBE NEWSWIRE) -- Librestream is pleased to announce that Safran Helicopter Engines has successfully deployed a remote video technical assistance service using the Onsight collaborative platform. Safran Helicopter Engines first announced this innovative Expert link branded service at the HAI Heli-Expo February 28 in conjunction with Heli Austria, Rotortech Services Inc and Heligo, first customers of this new service. Using the Expert link service, helicopter operators can connect immediately with remote experts at Safran Helicopter Engines to assist with technical diagnostics and maintenance tasks. The service includes a secure live video feed that remotely brings the eyes and ears of Safran experts into customer facilities to mentor and share maintenance best practices. "We felt that Expert link was an important part of our digital service strategy, which also includes services such as our EngineLife® Customer Portal and Health Monitoring solutions
SD-WAN Market Report Names Aryaka Top Independent Pure Play SD-WAN Market Leader Again in CY Q4 201720.3.2018 14:53 | Pressemelding
IHS Markit Report illustrates SD-WAN market is a two-horse race between Aryaka and VMware, showcases Aryaka's significant lead over Cisco, Riverbed, Silver-Peak, and others SAN MATEO, Calif., March 20, 2018 (GLOBE NEWSWIRE) -- Aryaka® maintained its position as the largest independent pure play SD-WAN provider by market share and revenues, and continued its march to close the gap on VMware in Q4 2017, according to the latest industry report from IHS Markit. The "IHS Markit's Data Center Network Equipment Quarterly Market Tracker" says Aryaka garnered 17% share of the SD-WAN market in Q4 2017, once again securing the company's lead over legacy networking vendors like Cisco and Riverbed. Aryaka's market share is listed as only 2% less than VMware's. "[Aryaka's] Customer deployments continue to focus on the replacement of MPLS with several large wins in the US, a large service provider partner in Asia Pacific, and a large service provider partner in EMEA serving the automotive sector," Cl
NRT Acquires OfferCraft, Award-Winning Provider of Artificial Intelligence, Gamification and Digital Content Solutions20.3.2018 14:22 | Pressemelding
Acquisition of hyper-engagement platform enhances NRT's ability to deliver transformative, revenue-generating technology to its customers LAS VEGAS, March 20, 2018 (GLOBE NEWSWIRE) -- NRT Technology Corp. ("NRT"), a leading provider of digital commerce experiences in gaming and financial services, announced that it has acquired the assets of privately held OfferCraft, a software company that uses artificial intelligence and gamification to drive loyalty, engagement and revenue. Terms of the agreement are not disclosed. The deal will allow NRT to integrate OfferCraft's patent-pending solutions into its existing kiosk, mobile, table games and cashless payment product lines, while also expanding into entirely new areas across nearly every digital channel. OfferCraft's artificial intelligence software allows offers, coupons and rewards to be distributed digitally across email, SMS, websites, social media, kiosks, the Point of Sale, signage, and more. Unlike traditional marketing content, t
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom