This morning, Sysco (NYSE:SYY) said it had agreed to buy US Foods for $3.5 billion from private equity owners KKR and Clayton, Dubilier & Rice. The deal includes $3 billion in Sysco stock and $500 million in cash, meaning that US Food shareholders will own approximately 13% of the combined company. As part of the deal, Sysco has agreed to assume the $4.7 billion in debt US Foods has on its book and give each private equity owner a seat on the board. On the news, shares of Sysco were higher by more than 25% so far.
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