990552 SYSCO to Acquire Buckhead Beef Company

Houston, TX - SYSCO Corporation, a leading foodservice marketer and distributor in North America, announced that it has signed a letter of intent to acquire The Buckhead Beef Company, Inc. of Atlanta. Founded in 1983, Buckhead Beef generates approximately $200 million in annual sales and is considered the leading Certified Angus Beef distributor and the fastest-growing and largest privately held red-meat purveyor to the foodservice industry in the U.S. Terms of the transaction, which is expected to close in late summer, were not disclosed.

Buckhead Beef offers a precision custom-cut fresh line of steaks and other lamb, veal and pork products, boxed beef, wild game and some poultry and seafood items from its 60,000 square-foot warehouse and aging facility. Their products are distributed to casual and white-tablecloth restaurants, premier hotels, casinos, country clubs and multi-unit customers in 11 states throughout the southeastern United States and Puerto Rico. In July of 1997 a warehouse and distribution facility was added in South Plainfield, New Jersey to service key Northeast cities.

“Buckhead Beef's signature line of products and custom cutting expertise will allow us to more fully train and support our marketing associate sales force in center-of-the-plate business throughout the Southeast,” said Bill M. Lindig, chairman and chief executive officer of SYSCO. “By custom tailoring our services to every customer's needs we can help them create memorable, mouth- watering meals that optimize their success. Buckhead Beef's ability to maintain consistency and quality in fresh-cut steaks is the key element that sets them apart in the industry.”

Buckhead Beef will become a subsidiary of SYSCO known as Sysco Buckhead Beef, Inc. SYSCO plans to retain the current workforce of approximately 300 employees under the direction of the key individuals who comprise the current management team of the family-owned operation. They include Howard I. Halpern, chairman and chief executive officer, and Kirk W. Halpern, vice president and chief operations officer.

“We are excited to join forces with SYSCO. They are a great organization and we have the highest regard for the company and management team. Their national distribution and infrastructure will allow us to accelerate our rapid growth and continue providing the finest quality meats at the best possible prices,” stated Howard I. Halpern.

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 $16 billion, SYSCO provides its products and services to about 300,000 customers. The SYSCO distribution network currently extends throughout the entire contiguous United States as well as portions of Alaska and Canada.

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