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Sobeys and Sysco to Sell Pacific Division of Serca Foodservice

STELLARTON, Nova Scotia - Sobeys Inc., Canada's second-largest retail grocer and distributor, and Sysco Corporation, North America's largest foodservice marketer and distributor, announced on Tuesday the signing of a definitive agreement to sell the Pacific Division operations of Serca Foodservice Inc. to Gordon Food Service. Terms of the transaction were not disclosed.

The Pacific Division of Serca is headquartered in Delta, B.C., and serves customers throughout British Columbia. The operations are offered for sale in connection with the previously announced proposed acquisition by Sysco of the Serca foodservice operations from Sobeys.

Both the sale of the Pacific Division operations and Sysco's acquisition of the Serca operations are subject to numerous conditions, including obtaining approval of the federal Competition Bureau. The sale will allow the Pacific Division to continue as a broadline foodservice distributor in British Columbia, independent of Sysco.

The closing of Sysco's acquisition of Serca and the sale of the Pacific Division to Gordon Food Service are expected to occur simultaneously in the next few weeks.

Gordon Food Service, a 103-year-old, family owned and managed, broadline foodservice distributor, is based in Grand Rapids, Mich. The company's distribution network services 30,000 customers with over 12,000 products in nine states, Ontario and Quebec. The company also operates 85 Marketplace retail stores in the Midwest.
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