HOUSTON, July 18, 2006 (PRIMEZONE) -- SYSCO Corporation (NYSE:SYY) today announced the signing of a Letter of Intent to acquire the foodservice assets of Bunn Capitol. Terms of the transaction, which is subject to successful completion of SYSCO's due diligence and Board approval, were not disclosed.
Founded as a wholesale grocer in 1840 by Jacob Bunn, Bunn Capitol is headquartered in Springfield, Illinois. Since its founding, five generations of the Bunn family have led Bunn Capitol, growing it into one of the premier food service distribution firms in the region. The company distributes more than 8,000 fresh, frozen and packaged goods to restaurants, healthcare businesses, clubs and other customer concepts throughout Illinois.
Richard J. Schnieders, chairman, chief executive officer and president of SYSCO, said, "The acquisition of Bunn Capitol's foodservice assets will strengthen our presence in the central Illinois foodservice market. The company's reputation, customer service commitment and market knowledge mirror our own values and we are excited about the growth opportunities that this will provide."
"This deal makes sense for us and we believe it will be the best for our customers," said Bob Bunn, president of Bunn Capitol. "We've been approached many times regarding the sale of our foodservice business, however in SYSCO we've found a company we know will provide the level of service that our customers have come to expect."
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 calendar year 2005 the company generated $31.4 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 Bunn Capitol's foodservice assets. 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.