HOUSTON, Feb. 20, 2006 (PRIMEZONE) -- SYSCO Corporation (NYSE:SYY) today announced the signing of a non-binding term sheet to acquire Desert Meats & Provisions, Inc., the largest independent specialty meat distributor in the Las Vegas and southern Nevada foodservice markets. Terms of the transaction, which is subject to successful completion of SYSCO's due diligence, were not disclosed.
Desert Meats & Provisions was founded in 1978 by Harlon Unruh, who continues to serve as the company's chief executive officer. The company operates from a 25,000-square-foot, state-of-the-art, USDA-inspected processing and distribution facility in Las Vegas, distributing more than 1,200 products, including fresh and frozen specialty and variety meats, aged beef, pork, lamb, veal, poultry and processed meat. The company's diverse base of customers includes more than 200 premier Las Vegas mega-resorts, hotel-casinos, and fine "white tablecloth" restaurants. For its fiscal year ended December 31, 2005 the company generated sales of approximately $55 million.
Larry J. Accardi, executive vice president of contract sales and president of specialty distribution companies at SYSCO, said, "The acquisition of Desert Meats & Provisions is a logical geographic expansion of SYSCO's specialty meat strategy. The combined purchase between our Newport Meat operation and our broadline company in Las Vegas will leverage Newport Meat's current distribution efforts in the Las Vegas market, while also supporting Sysco Food Services of Las Vegas with enhanced procurement capabilities to further grow their center-of-the-plate offerings."
Mr. Accardi added that the newly acquired company will report within SYSCO's specialty companies segment through Tim Hussman, the chief executive officer and president of Newport Meat Company, a SYSCO subsidiary located in Irvine, California. In addition, an advisory board consisting of Mr. Hussman, Mr. Unruh and David DeVane (president and CEO, Sysco Food Services of Las Vegas) will have oversight of the acquired company's strategic direction and go-to-market approach to maximize collaboration in the Las Vegas market.
"We are very excited about joining the nation's leading foodservice distributor," said Mr. Unruh. "SYSCO has actively expanded their specialty meat presence since 1999 and our company, through the efforts of our talented and committed employees, will help continue that focus."
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. For the fiscal year 2005 that ended July 2, 2005, the company generated $30.3 billion in sales. For more information about SYSCO visit the company's Internet home page at www.sysco.com.
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Forward-Looking Statements
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding the expected benefits of the acquisition of Desert Meats & Provisions. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. For example, the ability of the acquired business and SYSCO to achieve expected results may be affected by competitive price pressures, availability of supplies, work stoppages, severe weather, successful integration of the acquired operations by the Company, conditions in the economy, industry growth and internal factors, such as the ability to control expenses. For a discussion of additional factors affecting the Company, see the Company's Annual Report on Form 10-K for the fiscal year ended July 2, 2005 as filed with the Securities and Exchange Commission.