SYSCO Corporation NEWS RELEASE
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SYSCO Completes Acquisition of Freedman Companies
Houston, January 16, 2001 -- SYSCO Corporation (NYSE: SYY), the leading
foodservice marketing and distribution organization in North America, announced
today it has completed the acquisition of certain operations of The Freedman
Companies, a specialty meat supplier based in Houston, Texas. Terms of the deal
were not disclosed. The Freedman acquisition is SYSCO's fifth specialty meat
company purchase in less than two years and joins existing operations located in
Atlanta (GA), Irvine (CA), Toledo (OH) and Washington, D.C.
The Freedman Companies specialize in providing foodservice operators with
custom-cut CERTIFIED ANGUS BEEF(TM) and USDA Prime and Choice beef, as well as
an assortment of other protein products including pork, lamb, veal, poultry,
cooked and smoked products, marinated fresh products, fajita meats and sausages.
The companies that SYSCO acquired in the agreement generated combined sales of
approximately $215 million for calendar year 2000. Two of the divisions
purchased (Dallas and Houston) will continue to operate under the Freedman Food
Service name and the remaining operations (Austin, Harlingen and San Antonio)
will continue to operate under the name Texas Meat Purveyors. The new companies
will report as subsidiaries of Freedman Meats, Inc., with Don Freedman
continuing as president of the company and Ron Boatwright as executive vice
president.
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"The addition of the specialty meat operations of The Freedman Companies
greatly enhances SYSCO's ability to provide precision cut specialty meat
products throughout the southern United States," said Charles H. Cotros, SYSCO's
chairman and chief executive officer. "The Freedman Companies have a well
established reputation for providing excellent customer service, and their
expertise in the custom-cutting process will benefit our marketing associate
sales force immediately by augmenting the offerings they provide to our
customers."
SYSCO is the largest foodservice marketing and distribution organization in
North America, providing food and related products and services to about 356,000
customers. The SYSCO distribution network, supported by more than 40,000
employees, currently extends throughout the entire contiguous United States,
Alaska, the District of Columbia, Hawaii and portions of Canada. For fiscal
2000, which ended July 1, 2000, the company reported sales of $19.3 billion.
Certain statements made herein are forward-looking statements under the
Private Securities Litigation Reform Act of 1995. They include statements
regarding expected benefits of the Freedman acquisition on the Company's
marketing associate sales force. These statements are based on management's and
Freedman's current expectations and estimates; actual results may differ
materially due to certain risks and uncertainties. For example, the Company's
ability to achieve expected results may be affected by competitive price
pressures, availability of supplies, work stoppages, successful integration of
Freedman's 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 1, 2000 as filed with the Securities
and Exchange Commission.
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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 SALES MOMENTUM, EARNINGS GROWTH, CONTINUED STRENGTH OF SYSCO BRAND
PRODUCTS, INDUSTRY GROWTH, THE AWAY-FROM-HOME EATING HABITS OF THE AMERICAN
PUBLIC AND IMPROVED OPERATING EFFICIENCIES AND PRODUCTIVITY RELATED TO
INFORMATION SYSTEMS. THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES AND ARE
BASED ON MANAGEMENT'S CURRENT EXPECTATIONS AND ESTIMATES; ACTUAL RESULTS MAY
DIFFER MATERIALLY. THOSE RISKS AND UNCERTAINTIES THAT COULD IMPACT THESE
STATEMENTS INCLUDE THE RISKS RELATING TO THE FOODSERVICE DISTRIBUTION INDUSTRY'S
RELATIVELY LOW PROFIT MARGINS AND SENSITIVITY TO GENERAL ECONOMIC CONDITIONS;
SYSCO'S LEVERAGE AND DEBT RISKS; THE SUCCESSFUL COMPLETION AND INTEGRATION OF
ACQUISITIONS; THE POSSIBILITY THAT THE COMPANY'S INFORMATION SYSTEMS WILL NOT
OPERATE AS ANTICIPATED AND THEREFORE NOT PROVIDE THE COMPANY WITH THE EXPECTED
COMPETITIVE EDGE, THE RISK OF INTERRUPTION OF SUPPLIES DUE TO LACK OF LONG-TERM
CONTRACTS, SEVERE WEATHER, WORK STOPPAGES OR OTHERWISE; INTERNAL FACTORS SUCH AS
THE ABILITY TO CONTROL EXPENSES AND OTHER RISK FACTORS DETAILED IN SYSCO'S FORM
10-K FOR THE FISCAL YEAR ENDED JULY 1, 2000 FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
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