Sysco agrees to invest in Pacific Star Foodservice

Sysco Corp (NYSE:SYY), the Houston TX-based foodservice distributor, has reached an agreement to purchase 50% of Pacific Star Foodservice, a foodservice distributor in Mexico whose majority equity shareholder is privately owned Arancia SA de CV. Financial terms were not disclosed.
Pacific Star has operated since 1989 with distribution centers servicing the major metropolitan areas of Mexico City, Guadalajara, Monterrey, and Tijuana. It primarily services chain accounts, including fast food and casual dining restaurants, casinos, theme parks, movie theaters, and hotels throughout Mexico.
Pacific Star is Sysco’s second Latin America market investment  in 2014. In June, Sysco acquired a 50% ownership stake in Mayca Distribuidores SA, a foodservice distributor in Costa Rica.
As of October 2014, Pacific Star had 534 employees. All of them, including the management team, will remain in their positions at the closing of the transaction.
“We are pleased to reach this agreement to become joint partners with Sysco, North America’s leader in foodservice distribution,” said Armando Beltrán, chief executive officer  of Pacific Star. “Pacific Star’s customers and employees will benefit from the operational expertise, product assortment, and immense world-class capabilities that Sysco can offer.”
“Sysco is excited to partner with Pacific Star because of its reputation for customer service and the success in growing its business in Mexico,” said Kent Humphries, Sysco’s senior vice-president–International Foodservice Operations. “This partnership fits our international expansion strategy and reinforces our leadership position in North America with our operations in the United States and Canada. By combining the strengths of Pacific Star and Sysco, we can better serve customers in the region, continue to grow the business, and provide value to our shareholders.”
The transaction requires a regulatory review by Mexican government authorities, after which it will close. When completed, Mexico becomes the sixth nation outside the United States where Sysco will have broadline foodservice operations. The others are in the Bahamas, Canada, Costa Rica, Ireland, and Northern Ireland. Sysco also has subsidiaries that serve customers in more than 90 nations worldwide.
For more information, access www.sysco.com.