No upheaval for Brakes says new owner

Brakes Group will continue to operate under its present name and management, including CEO Ken McMeikan – at least in the short term – should the £2.2 billion takeover bid for the foodservice company by Sysco be agreed by the takeover authorities.

Sysco truck-for-webThe proposed acquisition was announced in Houston, Texas, on Monday by the US foodservice giant’s board, who also revealed that the purchase price will include around £1.6 billion of debt accruing to Brakes, which is presently owned by venture capitalist Bain Finance.

The deal would give the US concern control not only of the leading foodservice operator in the UK, but also of sister operations in Ireland, France, Sweden, Belgium, Spain and Luxembourg.

Last year Brakes, which has a total staff of 15,000, lifted turnover by 6.5% to £3.3 billion with adjusted earnings before tax and interest of £184.4 million.

Sysco, which claims to be the global leader in foodservice, with sales last year of more than $48 billion (£33.6 billion) operates from 196 sites in the US, Canada, the Republic of Ireland, Northern Ireland and the Bahamas. It also has joint ventures in Mexico and Costa Rica.

Tel: Brakes Group (01233) 206000

Published Date: February 25, 2016
Category: Wholesale Industry News