Sysco Will Accelerate Stock Buybacks
September 28 2015 - 6:54PM
Dow Jones News
By Josh Beckerman
Sysco Corp. said it will accelerate its stock buybacks, planning
to buy $1.5 billion of stock by May under a repurchase agreement
with Goldman Sachs Group Inc.
It also expects to continue open-market buybacks from time to
time.
In June, the food-distribution company abandoned its planned
acquisition of rival US Foods Inc. following a federal judge's
ruling against the deal. At the time, Sysco said it would buy up to
$3 billion of its stock over two years.
Sysco said Monday that it completed a $2 billion offering of
senior notes, planning to use the proceeds to fund its stock
buybacks and repay about $500 million of outstanding commercial
paper.
Sysco had been working on the merger for more than a year and a
half when U.S. District Judge Amit Mehta in Washington issued a
preliminary injunction to stop the deal on concerns it could hurt
competition. The Federal Trade Commission had filed a lawsuit in
February challenging the transaction.
Earlier this month, Sysco outlined a three-year plan to improve
its annual operating income by $400 million through more stringent
cost management and aggressive sales efforts, weeks after adding
activist investor Nelson Peltz to its board.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 28, 2015 18:39 ET (22:39 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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