US food distributor Sysco Corporation has agreed a deal to acquire Brakes Group for approximately £2.2bn from Bain Capital Private Equity.
The companies expect to complete the transaction by July 2016 if approved by EU competition authorities.
Under the deal, which includes the repayment of circa $2.3bn (£1.65bn) of Brakes’ financial debt, Brakes will operate as a standalone company within Sysco and will continue to be led by CEO Ken McMeikan.
Brakes Group supplies fresh, chilled and frozen products to more than 50,000 customers, and counts Country Choice as one of its companies.
“It’s very exciting for Brakes Group to be joining the recognised 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.”
Sysco chief executive officer Bill DeLaney said: “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.
“This transaction will unite Sysco with a leading foodservice distributor in Europe with demonstrated capability to sustainably grow its business over time.”