Rykoff-Sexton/US Foodservice and JP Foodservice Agree To Merge
In 1997, Rykoff-Sexton/US Foodservice (RYK) was generating $3.2 billion in annual sales. The combined company was in the process of re-branding all products to the US Foodservice Brand by dropping the Rykoff-Sexton, S.E. Rykoff & Co. and John Sexton & Co. brands. It was determined that a standardized and easily recognizable brand would better compete in the rapidly consolidating foodservice market. In addition, the US Foodservice brand would reflect a nationwide presence and distribution capabilities. During this time, the company headquarters were moved to Wilkes-Barre, PA.
In July 1997, JP Foodservice and Rykoff-Sexton/US Foodservice reached an agreement to merge the two companies. Rykoff-Sexton/US Foodservice share holders would exchange their Rykoff-Sexton/US Foodservice (RYK) stock for JP Foodservice stock (JPF). All outstanding Rykoff-Sexton/US Foodservice (RYK) shares were exchanged for $680 million in JP Foodservice (JPF) stock. The $700 million in Rykoff-Sexton/US Foodservice debt was assumed by the merged Rykoff-Sexton/US Foodservice-JP Foodservice balance sheet. In 1997, JP Foodservice was generating about $2 billion in annual sales primarily focused on the east coast. Rykoff-Sexton/US Foodservice was generating $3.2 billion in annual sales from its national distribution network and its manufacturing divisions. After the merger, the combined Rykoff-Sexton/US Foodservice-JP Foodservice operating company generated $5 billion in annual sales in 1997.
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