Industry News - AM

US Foods to return to acquisition strategy: report


By Lisa M. Keefe on 8/12/2015

Although its planned merger with rival Sysco Corp. fell through, distributor US Foods Inc. will resume "active acquisition," CEO Pietro Satriano said, according to a report in Nation's Restaurant News.

Satriano made the comment in a call discussing second-quarter earnings: Net sales for the period ended June 27 fell 0.9 percent, to $5.8 billion, from $5.9 billion the previous year. Over the 12 months ended June 27, the company noted, net sales increased 2.1 percent, to $23.1 billion. However, US Foods had a net loss of $127 million for the quarter, an increase from a $19 million loss in the same period a year ago. Gross profit was $993 million, a 3-percent increase from $964 million a year ago.

Before agreeing to a merger with Sysco two years ago, US Foods was making acquisitions and will return to that strategy soon, the CEO promised. “Obviously, for the past two years, that came to a standstill,” he said, according to NRN. “We will now get back to a much more active stance on the (merger and acquisition) front.”

“A fair number of folks are interested in talking to us as a result,” Satriano said.

Satriano said he would look at any opportunity, but the most likely deals would be smaller acquisitions that would solidify US Foods' position in individual markets. 

Sysco executives also have said they plan to pursue acquisition targets.


 
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