EXHIBIT 99.2
SYSCO Corporation Completes Acquisition of FreshPoint Holdings, Inc
HOUSTON, March 17 /PRNewswire/ -- SYSCO Corporation (NYSE: SYY), the leading
foodservice marketing and distribution organization in North America, announced
today that the acquisition of FreshPoint Holdings, Inc. has been completed.
Commenting on the agreement, Charles H. Cotros, SYSCO's president and chief
executive officer, said, "The produce industry has expanded rapidly over the
last five years, and is expected to continue growing this decade at an annual
rate of four to five percent. The addition of FreshPoint, one of America's
premier produce distributors, is in line with our product penetration
initiatives."
"FreshPoint's product expertise, strategic locations and specialized delivery
capabilities will allow us to pursue our objective of being the leading national
produce supplier," added Thomas E. Lankford, SYSCO's executive vice president,
merchandising services and multi-unit sales. "By combining their purchasing
power with ours, we will be able to offer customers a breadth of specialty
products that previously was unavailable through our broadline distribution
companies, which will allow them to enhance their menus with an even greater
assortment of consistent quality fresh produce from sources throughout the
world."
As previously announced, Mr. Lankford will assume the role of executive vice
president, foodservice operations and FreshPoint, Inc. effective July 2. In his
new position he will be responsible for overseeing SYSCO's traditional operating
company functions nationwide, as well as the FreshPoint specialty produce
operation. Mitt Parker, FreshPoint's president and chief executive officer, who
will become a senior vice president of SYSCO, will be reporting to Mr. Lankford.
The five current senior vice presidents of operations, each of whom has
responsibility for 10 to 12 traditional operating companies, also will be
reporting to him.
"We're very excited to become a part of the nation's leading foodservice
distribution company," Mr. Parker said. "Together, SYSCO and FreshPoint can
enhance the national scope of products and services currently provided to
customers. For example, we will be able to provide customers with a full range
of tomato products such as vine-ripened and hot-house tomatoes on a year-round
basis, and fresh fruits and vegetables in packaging sized to their own
specifications."
FreshPoint Holdings, Inc., headquartered in Dallas, Texas, is one of the largest
foodservice and wholesale produce distribution companies in North America. The
company has a network of 28 facilities located in California, Colorado, Florida,
Georgia, Nevada, Texas and Washington, D.C., as well as the Canadian provinces
of British Columbia and Alberta. Its annualized sales of approximately $750
million approaches the $1 billion in produce sales that SYSCO generated in
fiscal 1999.
SYSCO, listed on the New York Stock Exchange, is the largest foodservice
marketing and distribution organization in North America. Generating annualized
sales in excess of $18.5 billion based on the results of the first half of
fiscal 2000, SYSCO provides its products and services to about 325,000
customers. The SYSCO distribution network currently extends throughout the
entire contiguous United States and Alaska as well as portions of Canada.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995:
Certain statements made herein are forward-looking statements under the Private
Securities Litigation Reform Act of 1995. They include statements regarding
annualized sales, growth of the produce industry, growth of the foodservice
distribution industry and the ability of SYSCO to realize expected synergies
following the acquisition. These statements involve risks and uncertainties and
are based on current expectations and management's estimates; actual results may
differ materially. Those risks and uncertainties that could impact these
statements include the risk and uncertainty relating to sensitivity to
conditions in the economy, the foodservice distribution industry's relatively
low profit margins, SYSCO's leverage and debt risks, the risk of interruption of
supplies due to lack of long-term contracts, work stoppages or otherwise, the
successful integration of acquisitions, and other risk factors detailed in
SYSCO's Form 10-K for the fiscal year ended July 3, 1999 filed with the
Securities and Exchange Commission.
SOURCE SYSCO Corporation
CONTACT: Toni R. Spigelmyer, Assistant Vice President, Investor and Media
Relations of SYSCO Corporation, 281-584-1458/