Sysco Corp., the Houston-based leading North American foodservice distributor, agreed to acquire Doughtie's Foods Inc., a full-line, $87 million-a-year institutional food distributor serving 1,800 customers in Virginia, Maryland, North Carolina and Delaware. The merger agreement originated with a February 17 letter of intent.
In exchange for each share of Doughtie's common stock, Doughtie's shareholders will receive $17.00 per share in cash and/or stock. Approximately $14.00 per share will be paid at closing, with $3.00 held back for indemnification and other purposes, including expense reimbursement, for up to three years after closing.
The purchase is subject to approval by regulatory authorities and Doughtie's stockholders. Closing is expected to be in July or August.
Sysco is reported to be the largest foodservice marketing and distribution organization in North America, providing products and services to about 300,000 customers to the tune of $16 billion in annual sales.