To gain government approval of its US Foods merger, food-service distributor Sysco Corp. said Monday it will sell 11 US Foods facilities, including one in Centennial.
The sale to Performance Food Group is contingent on the merger. Rosemont, Ill.-based US Foods declined to share details. But according to a city report, US Foods was the sixth largest employer in Centennial in 2013.
Houston-based Sysco announced its $3.5 billion merger in December 2013. But the process stalled because the Federal Trade Commission expressed competitive concerns.
“While we respectfully but vigorously disagree with the FTC’s analysis, we believe this divestiture package fully addresses its concerns,” Sysco CEO Bill DeLaney said in a statement.
Contingent on the merger, Sysco said it will also sell US Foods facilities in Corona, Calif.; Kansas City, Kan.; Phoenix; Salt Lake City; San Diego; San Francisco; Seattle; Cleveland; Las Vegas; and Minneapolis.
The 11 centers generated $4.6 billion in annual revenue, according to Sysco. After the sale, Sysco said that along with planned integration, it will still achieve net annual synergies of at least $600 million in four years.
Privately owned Performance Food has three locations in the Denver area, including the headquarters of its Vistar operation in Centennial, said Joe Vagi, a company spokesman.
Vistar distributes candy and snacks to retailers, theaters and offices. In Centennial, it employs 240 people. A separate Vistar distribution center in Denver employs 47. And a Performance Food distribution center in Henderson employs 151 people.
Separately, Sysco has four facilities in the Denver area, including a 430,000 square foot warehouse that serves more than 7,000 accounts, according to Sysco’s website. Sysco employed 50,300 workers nationwide as of June, according to its annual report.
Tamara Chuang: 303-954-1209, tchuang@denverpost.com or
