HOUSTON, Feb. 21, 2006 (PRIMEZONE) -- SYSCO Corporation (NYSE:SYY) today announced that its FreshPoint produce subsidiary has acquired City Produce, Inc. and a related group of companies, which together comprise the largest independent produce distributor in the Austin, San Antonio, Corpus Christi and Harlingen, Texas foodservice markets. The company also announced that its FreshPoint subsidiary has entered into a definitive agreement to acquire Thomas Brothers Produce, Inc., the largest independent produce distributor in the state of Oklahoma. Terms of the transactions were not disclosed.
City Produce, Inc. was founded in 1981 and is headquartered in Austin, with additional distribution facilities located in Corpus Christi, Harlingen and San Antonio. Led by president Steven Scruggs, who will remain in that position, the company employs approximately 150 associates. City Produce distributes to a variety of foodservice markets throughout central and south Texas including Austin, College Station, Corpus Christi, Del Rio, Kerrville, Killeen, New Braunfels, San Antonio, San Marcos, Temple, Waco, Victoria, Laredo, McAllen, Brownsville, and Harlingen. For calendar year 2005 City Produce generated approximately $43 million in sales.
Based in Oklahoma City with a satellite facility in Tulsa, Oklahoma, Thomas Brothers Produce, Inc. was founded in 1999 by Mike Thomas, who will continue in his role as president of the company. In its seven years of existence Thomas Brothers Produce has grown to become Oklahoma's largest distributor of produce to the foodservice industry. The company employs approximately 125 associates and generated sales of approximately $34 million in calendar 2005.
Brian M. Sturgeon, vice president of SYSCO and president and chief executive officer of FreshPoint, said, "The addition of City Produce and Thomas Brothers is a significant milestone for FreshPoint. Both of these companies are market leaders and will allow our distribution reach to expand into the Oklahoma, Arkansas and central Texas foodservice markets. We are pleased to welcome the associates of both of these companies into the SYSCO family."
"Becoming a member of SYSCO's FreshPoint distribution network is a wonderful opportunity for our company and our customers," said Mr. Scruggs. "SYSCO and FreshPoint will provide us with the ability to expand our product offerings, as well as the support, opportunities and competitive advantages that make SYSCO the number one foodservice distributor in North America."
Mr. Thomas added, "SYSCO's commitment to -- and success in -- expanding its market share in the fresh produce segment is well documented. Our operation has experienced tremendous growth since our founding and we are excited about joining the FreshPoint family of companies and the opportunities it presents to our employees and customers."
SYSCO is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. For the fiscal year 2005 that ended July 2, 2005, the company generated $30.3 billion in sales. For more information about SYSCO visit the company's Internet home page at www.sysco.com.
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Forward-Looking Statements
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding the expected benefits of the acquisition of City Produce, Inc. and Thomas Brothers Produce, Inc. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. For example, the ability of the acquired business and SYSCO to achieve expected results may be affected by competitive price pressures, availability of supplies, work stoppages, severe weather, successful integration of the acquired operations by the Company, conditions in the economy, industry growth and internal factors, such as the ability to control expenses. For a discussion of additional factors affecting the Company, see the Company's Annual Report on Form 10-K for the fiscal year ended July 2, 2005 as filed with the Securities and Exchange Commission.