Leading European Foodservice Distributor Has Annualised Revenues of
Approximately EUR 155 Million
HOUSTON and LIMERICK, Ireland, March 31, 2009 (GLOBE NEWSWIRE) -- Sysco
Corporation (NYSE:SYY) today announced that it has acquired Pallas Foods
Limited, a leading foodservice distributor based in Newcastle West, Ireland.
The acquisition has closed effective today.
Pallas Foods commenced operations in the early 1980's as a family business and
has grown into a diversified foodservice distribution company with an emphasis
on quality and service. The company, with annual revenues of approximately EUR
155 million, employs approximately 500 employees, many of whom are original
employees of the company. Pallas operates its broadline distribution business
from its Newcastle West facility supplemented by eight operating depots
throughout Ireland.
"The acquisition of Pallas Foods represents a partnership with a quality
management team," said Ken Spitler, Sysco's vice chairman, president and chief
operating officer. "This opportunity allows Sysco to further explore
international growth with a well-regarded team that provides the high-quality
service standards that Sysco customers are accustomed to." In connection with
the acquisition, the most senior executives of Pallas have signed long-term
employment contracts with Sysco.
"By joining Sysco, we have opened up access to a large number of quality
assured products for our customers," said Tim Geary, Pallas Foods founder.
"This alignment positions our company for long-term growth. We look forward to
strengthening our position as the industry leader in Ireland."
Barry O'Leary CEO IDA Ireland welcomed Sysco's arrival "I am delighted to see a
highly regarded company like Sysco invest in Ireland through this acquisition.
We look forward to establishing a good working relationship with them and my
hope is that this announcement today only signals the beginning of a very
fruitful longer term relationship between Sysco and Ireland."
About Sysco
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. The company operates 180 distribution facilities serving more than
400,000 customers. For the fiscal year 2008 that ended June 28, 2008, the
company generated more than $37 billion in sales. For more information about
Sysco, visit the company's Internet home page at www.sysco.com.
The Sysco Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=747
About Pallas Foods
Pallas Foods commenced operations as a family owned business based in Newcastle
West in Limerick. Since the early 1980's, the business has evolved into one of
the leading foodservice distributors on the island of Ireland.
Pallas Foods currently serves over 6,000 customers from a portfolio of 7,000
products. The company is unique in that it offers fresh, frozen and ambient
products, across the island of Ireland through its own delivery fleet ensuring
the product arrives as expected by the customer. The company operates from a
central warehouse in Newcastle West through eight distribution/delivery centres
across the country.
Forward-Looking Statements
Certain statements made herein are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. They include statements regarding
Sysco's ability to strengthen Pallas's position as the industry leader in
Ireland and position it for long-term growth and profitability, and Sysco's
ability to grow internationally. These statements involve risks and
uncertainties and are based on management's current expectations and estimates;
actual results may differ materially. Those risks and uncertainties that could
impact these statements include risks that pertain to Sysco's business,
including the risks relating to the foodservice distribution industry's
relatively low profit margins and sensitivity to general economic conditions,
including the current economic environment and decreases in consumer spending;
increased fuel costs; Sysco's leverage and debt risks; the successful
completion of the acquisition and integration of Pallas; the risk of
interruption of supplies due to lack of long-term contracts, severe weather,
work stoppages or otherwise; construction schedules; competitive conditions in
Ireland and other foreign countries; labor issues; and internal factors such as
the ability to control expenses. For a discussion of additional factors
impacting Sysco's business, see the Company's Annual Report on Form 10-K for
the year ended June 28, 2008 as filed with the Securities and Exchange
Commission.
CONTACT: Sysco Corporation
Investor Contact
Neil Russell, Vice President, Investor Relations
281-584-1308
United States Media Contact
Mark Palmer, Vice President, Corporate Communications
281-584-1303
European Media Contact
Anne-Marie Curran
00 353 87 2864079
Sysco Announces Acquisition of Pallas Foods
| Source: Sysco Corporation