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Sysco

From Wikipedia, the free encyclopedia
This article is about the American food-service company. For the Canadian Crown corporation, see Sydney Steel Corporation.
Not to be confused with Cisco or Sisqó.
"SYY" redirects here. The term may also refer to the IATA airport code for Stornoway Airport.
Sysco Corporation
Company typePublic
IndustryWholesale
FoundedMarch 19, 1969; 55 years ago (1969-03-19)
Founder
Headquarters
Houston, Texas
,
U.S.
Key people
Kevin Hourican (chairman and CEO)
Services
  • Food-service
  • Food-away-from-home
Revenue
  • Increase US$78.8 billion (2024)
  • Increase US$3.20 billion (2024)
  • Increase US$1.96 billion (2024)
Total assets
  • Increase US$24.9 billion (2024)
Total equity
  • Decrease US$1.86 billion (2024)
Number of employees
76,000 (2024)
Websitesysco.com
Footnotes / references
Financials as of June 29, 2024.[1]

Sysco Corporation (short for Systems and Services Company) is an American multinational corporation involved in marketing and distributing food products, smallwares, kitchen equipment and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses like hotels and inns, and wholesale to other companies that provide foodservice (like Aramark and Sodexo). The company is headquartered in the Energy Corridor district of Houston, Texas.[2] Sysco is the world's largest broadline food distributor; it has more than 600,000 clients in a wide array of fields. Management consulting is also an integral part of their services. The company operates approximately 330 distribution facilities worldwide; providing service to over 90 countries.

The company was founded in 1969 by Herbert Irving, John F. Baugh, and Harry Rosenthal.[3] The company became public on March 3, 1970. On July 20, 2009, Fortune magazine ranked Sysco No. 204 in the annual Fortune 500 companies in world based on sales volume. On May 3, 2010, Fortune ranked Sysco as the seventh largest Fortune 500 Company in Texas and 55th largest in the U.S. by total revenue.[4] Sysco is also the largest non-oil related company in Houston and the third largest non-oil related company in Texas (behind AT&T and Dell).[4] The company ranked No. 54 in the 2018 Fortune 500 list of the largest US corporations by total revenue.[5]

In December 2013, Sysco announced an $8.2 billion planned acquisition of its next-largest food distribution rival, US Foods.[6] The Federal Trade Commission challenged the acquisition as a violation of the Clayton Antitrust Act that would substantially lessen competition. After the court ruled that the combined company would likely reduce competition because it would control 75% of the U.S. food service industry, Sysco terminated its merger with US Foods.[7]

History

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Founding and early history

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In 1966, Zero Foods owner John Baugh initiated discussions with the leaders of eight other food distribution companies about the prospect of forming one large corporation.[8] The nine companies agreed to terms and formed Sysco in May 1969. At the time of the merger, the total sales of the nine companies were approximately $115 million.[9] In March 1970, Sysco held its initial public offering.[10]

Sysco made its first acquisition in 1970, purchasing Arrow Foods Distributor.[11] Between 1970 and 1980, the company continued to grow through the acquisition of 25 small food distributors.[12] It also expanded its trucking fleet and constructed refrigerated warehouses for food storage.[9]

In 1980, Sysco recorded $1.2 billion in annual revenue. The following year, it moved its stock from the American Stock Exchange to the New York Stock Exchange.[12] In 1985, Sysco was described in a New York Times report as "the nation's leading food service marketing and distribution company."[13]

Acquisitions and expansion

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In 1988, Sysco achieved nationwide coverage through its acquisition of the food distributor CFS Continental.[14] By 1996, Sysco was the third-largest company in Houston and had over 30,000 employees.[15] Sysco acquired Newport Meat in 1999,[16] which at the time had sales of approximately $100 million per year. This was the company's first acquisition of a California company.[17] Between 1995 and 2000, Sysco's annual sales increased from $12 billion to $19 billion.[14] In 2002, Sysco expanded into the Canadian market by purchasing SERCA Foodservices for $278 million.[18] SERCA's business was similar to Sysco's, with the Canadian company supplying food products and foodservice supplies to approximately 80,000 customers at the time of the acquisition.[18] The following year, Sysco acquired Asian Foods, which was then the largest Asian food distribution company in North America.[19][9] In 2009, Sysco made its first acquisition outside of North America, buying the Irish food distributor Pallas Foods.[20][21] Further expanding its footprint in Ireland, Sysco purchased the food distributor Crossgar Foodservice for an undisclosed amount in 2012.[22][23]

On December 9, 2013, Sysco announced they were planning to acquire US Foods, their closest competitor, for a total of $3.5 billion.[24] However, on June 24, 2015, US Federal Judge Amit Mehta ruled that the combined Sysco-US Foods would control 75% of the U.S. food service industry and would stifle competition.[25] As a result, on June 29, 2015, Sysco terminated its merger with US Foods.[26]

In February 2016, Sysco announced that it was purchasing the Brakes Group for $3.1 billion.[27] At the time, Brakes was serving about 50,000 restaurants, hotels, and schools across Europe.[28] In October 2017, Sysco acquired HFM FoodService, and later changed its name to Sysco Hawai'i in 2019.[29] In March 2018, Sysco acquired Kent Frozen Foods.[30]

In May 2021, Sysco acquired Greco and Sons, a distributor of Italian specialty food products.[31] In the September the same year, Sysco acquired Medina Foodservice.[32] In November 2021, FreshPoint, a division of Sysco, acquired Paragon Foods.[33] Later that year, Sysco purchased the fresh produce distributor The Coastal Companies for the purpose of supplementing both its fleet and its specialty produce business.[34] In October 2023, Sysco announced that it was purchasing Edward Don & Company, a food service supplies and equipment distributor.[35][36] This acquisition gave the company additional office and distribution space, as well as the ability to design and build kitchens for its customers.[37]

In December 2023, Sysco Ireland announced plans to acquire Ready Chef Ltd.[38][39]

Sysco truck docked at Duke University

Subsidiaries

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The SYGMA Network, Inc. is a wholly owned subsidiary of Sysco that provides food and non-food products to chain restaurants throughout the United States.

SYGMA was founded in January 1984, when senior officers of Sysco Corporation started discussions for forming a new distribution company. The first products were shipped in May 1985, from SYGMA's first distribution center in Oklahoma. In 1988, Sysco acquired CFS, increasing head count at the organization.

SYGMA's customers include approximately 14,000 restaurants representing 26 concepts. Operating from 14 distribution centers, SYGMA is one of the largest chain distributors in the United States with sales over $6.7 billion. 186 million cases of product are delivered each year. SYGMA currently employs over 4,000 employees.

References

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  1. ^ "Sysco Corporation FY 2024 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. August 28, 2024. Retrieved August 28, 2024.
  2. ^ "Land Use and Demographics[permanent dead link]." Energy Corridor District. March 2009. 3 (7/53). Retrieved on January 16, 2010.
  3. ^ "Sysco". Library of Congress. Archived from the original on October 31, 2020. Retrieved March 17, 2024.
  4. ^ a b "Fortune 500 2010: States: Texas Companies". CNN.
  5. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  6. ^ Some independents eager to take bite out of Sysco, The Deal Pipeline, William McConnell, April 3, 2014.
  7. ^ Gara, Antoine (June 29, 2015). "Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC". Forbes. Retrieved October 1, 2015.
  8. ^ Hassell, Greg (July 10, 1998). "The sage of Sysco; Retired founder still at work". Houston Chronicle. Zero Foods was transformed into Sysco in the late 1960s, when Baugh decided the time was ripe to go national. Rather than battle rivals in other cities, he recruited eight different distributors with the idea of joining him and forming one big company... Baugh initiated the discussions in 1966, and three years later, the far-flung companies cemented their partnership.
  9. ^ a b c Takahashi, Paul (March 26, 2020). "Houston food service giant Sysco marks 50th anniversary as challenges mount". Houston Chronicle. Retrieved December 19, 2023.
  10. ^ "Business briefs; Houston & Texas". Houston Chronicle. November 7, 1998. Sysco Corp. plans to raise its cash dividend by a penny to 10 cents per share… The dividend increase is the 30th approved since the company's initial public offering in March 1970.
  11. ^ Amber, Melis (August 6, 2023). "Sysco: 13 Facts About The Nation's Largest Food Distributor". Mashed. Retrieved December 19, 2023.
  12. ^ a b "$1 Billion Company 'Practically Invisible'". New York Times. February 12, 1981. Retrieved December 19, 2023.
  13. ^ Gilpin, Kenneth N. (November 11, 1985). "President Named In Sysco Changes". New York Times. Retrieved December 19, 2023.
  14. ^ a b Hagerty, James R. (January 3, 2020). "Former Sysco CEO Bill Lindig, Who Helped Create Food-Service Giant, Dies at 83". Wall Street Journal. Retrieved March 4, 2024.
  15. ^ Hassel, Greg. "Sysco goes to court vs. RioStar/Chapter 7 sought for Ninfa's parent." Houston Chronicle. Friday October 18, 1996. Business 1. Retrieved on February 6, 2012.
  16. ^ Earnest, Leslie (1999-07-10). "Sysco Acquiring Newport Meat". Los Angeles Times. Retrieved 2024-09-06.
  17. ^ "COMPANY NEWS; SYSCO TO BUY A CALIFORNIA MEAT DISTRIBUTOR". New York Times. July 10, 1999. Retrieved March 4, 2024.
  18. ^ a b "SYSCO TO ACQUIRE SERCA, CANADIAN NATIONAL BROADLINER, (USD$1.4-BILLION)". Restaurant Business. 5 December 2001. Retrieved 29 December 2020.
  19. ^ "Asian Foods bought by Sysco". bizjournals. 12 November 2002. Retrieved 29 December 2020.
  20. ^ Labanyi, David (April 1, 2009). "Sysco buys Limerick-based Pallas Foods". The Irish Times. Retrieved March 4, 2024.
  21. ^ "Pallas Foods sold to Sysco after two decades of family ownership". Irish Independent. 2009-03-31. Retrieved 2024-09-06.
  22. ^ Jones, Kristin. "Sysco Buys Crossgar Foodservice, Pushing Irish Expansion". Wall Street Journal. Archived from the original on June 17, 2012. Retrieved 15 June 2012.
  23. ^ "Crossgar Foodservice bought by US firm Sysco". BBC. June 13, 2012. Retrieved July 2, 2024.
  24. ^ de la Merced, Michael J. (June 29, 2015). "Sysco Terminates Deal With US Foods". New York Times. Retrieved March 4, 2024.
  25. ^ Kendall, Brent (2015-06-29). "Judge Explains Reasons for Blocking Sysco-US Foods Merger". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-07-08.
  26. ^ "Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC". Forbes. June 29, 2015.
  27. ^ Hellier, David (2016-02-22). "Brakes sold to US company Sysco in $3.1bn deal". The Guardian. ISSN 0261-3077. Retrieved 2024-09-06.
  28. ^ Picker, Leslie (February 22, 2016). "Sysco to Acquire Brakes Group, a Food Distributor in Europe". New York Times. Retrieved March 4, 2024.
  29. ^ "HFM FoodService becomes Sysco Hawaiʻi | 2019-08-29 | Refrigerated & Frozen Foods". www.refrigeratedfrozenfood.com. Retrieved 2024-10-16.
  30. ^ foodmanufacture.co.uk (2018-04-04). "Sysco completes Kent Frozen Foods acquisition". foodmanufacture.co.uk. Retrieved 2024-10-16.
  31. ^ Romeo, Peter (May 20, 2021). "Sysco to acquire Italian specialist Greco and Sons". Restaurant Business. Retrieved March 4, 2024.
  32. ^ Cheshire, Luisa (3 September 2021). "Sysco acquires Medina Foodservice". Fruitnet. Retrieved 2024-09-27.
  33. ^ Schooley, Tim (29 November 2021). "Bellin sells Paragon Foods to FreshPoint division of Sysco". Pittsburgh Business Times. Retrieved 27 September 2024.
  34. ^ Kapadia, Shefali (December 8, 2021). "Sysco acquires distributor The Coastal Companies and its fleet assets in M&A spree". Trucking Dive. Retrieved March 4, 2024.
  35. ^ "Sysco to acquire Edward Don & Company". Houston Daily. October 14, 2023. Retrieved March 4, 2024.
  36. ^ Romeo, Peter (11 October 2023). "Sysco is buying equipment supplier Edward Don". Restaurant Business. Retrieved 2024-09-19.
  37. ^ Whitaker, Harriet (October 16, 2023). "Edward Don & Co sells business to Sysco". Catering Insights. Retrieved March 4, 2024.
  38. ^ "Sysco Ireland to acquire fruit and veg supplier Ready Chef". The Irish Times. Retrieved 2024-09-19.
  39. ^ "Sysco Ireland to acquire specialist produce supplier Ready Chef". 2023-12-08. Retrieved 2024-09-19.
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Wikimedia Commons has media related to Sysco.
  • Official website
  • Business data for Sysco:
  • Asian Foods Inc.
  • BusinessWeek 50 ranking and analysis of Sysco
  • The SYGMA Network, Inc.
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