Rykoff-Sexton Merges With JP Foodservice
In July 1997, JP Foodservice ($1.7 billion in revenue) and Rykoff-Sexton ($3.2 billion in revenue) reached an agreement to merge in order to create a larger single brand to better compete in a rapidly consolidating industry. JP Foodservice (JPF) exchanged $680 million in company JPF stock for all outstanding Rykoff-Sexton shares and the assumption of $700 million in Rykoff-Sexton debt (total deal value of $1.38 billion) . All individual brands were dropped in favor of the US Foodservice brand. The merger created a larger national foodservice company with $5 billion annual sales (1997).
Read more about this topic: S.E. Rykoff