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.
Read more about this topic: Sexton Foods
Famous quotes containing the words agree and/or merge:
“The majority is never right. Never, I tell you! That’s one of these lies in society that no free and intelligent man can help rebelling against. Who are the people that make up the biggest proportion of the population—the intelligent ones or the fools? I think we can agree it’s the fools, no matter where you go in this world, it’s the fools that form the overwhelming majority.”
—Henrik Ibsen (1828–1906)
“Popular art is normally decried as vulgar by the cultivated people of its time; then it loses favor with its original audience as a new generation grows up; then it begins to merge into the softer lighting of “quaint,” and cultivated people become interested in it, and finally it begins to take on the archaic dignity of the primitive.”
—Northrop Frye (b. 1912)