Sysco to buy 50% stake in foodservice distributor
Nov. 12, 2014
by Meat&Poultry Staff
HOUSTON – Sysco Corporation has reached an agreement to buy a 50 percent stake in Pacific Star Foodservice, a leading foodservice distributor based in Mexico. Privately owned Arancia, SA de CV is the major equity shareholder. The transaction is subject to a regulatory review by Mexican government authorities, after which it will close.
"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."
Pacific Star has distribution centers serving customers in major metropolitan areas of Mexico City, Guadalajara, Monterrey and Tijuana. The company primarily serves chain accounts, including fast food and casual dining restaurants, casinos, theme parks, movie theaters and hotels throughout Mexico. Pacific Star employees 534 employees who will remain in place — along with the management team — at the close 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, CEO 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."
The Pacific Star transaction represents the second Latin American market investment for Sysco. In June, Sysco acquired 50 percent ownership in Mayca Distribuidores, SA, a leading foodservice distributor in Costa Rica.
Mexico becomes the sixth country outside the US where Sysco will have broadline foodservice operations, the company noted.