001124 Sysco Will Buy Freedman Meat Operations

New York - Top U.S. foodservices company Sysco Corp. said it would buy five specialty meat operations in Texas from Freedman Cos. for an undisclosed sum to expand its specialty meat business.

Houston-based Sysco said it was buying Freedman companies in Dallas and Houston operating under the Freedman Food Service name and operations in Austin, Harlingen, and San Antonio operating as Texas Meat Purveyors. Freedman will retain its Freedman Distributors Inc. unit.

“This decision is in line with our stated goals of enhancing our geographic coverage for specialty meat operations,” Sysco Chairman and Chief Executive Charles Cotros said.

Sysco said the Freedman operations it is buying should generate sales of about $215 million in calendar 2000. Sysco reported sales of $19.3 billion for its fiscal year 2000, which ended July 1.

Shares of Sysco were up 1/2 at $53-1/4, surpassing their previous 52-week high of $52-15/16, in late-afternoon trading on the New York Stock Exchange. The stock has more than doubled from its 52-week low of $26-3/16 in March.

The deal is subject to due diligence and the negotiation of a definitive agreement, Sysco said.

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