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 $200 million, employs about 500 associates, many of whom are original employees. 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 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 of IDA Ireland, welcomed Sysco's arrival saying, "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.
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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 temperature 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.