020852 SYSCO to Acquire Ohio-based Abbott Foods

Houston (Business Wire) - SYSCO Corporation announced it has signed a letter of intent to acquire Abbott Foods Inc., an independently owned broadline foodservice distributor located in Columbus, Ohio. The purchase is expected to close by early October, 2002.

Abbott Foods Inc., is Ohio's largest privately owned foodservice distributor, with sales of approximately $200 million in 2001. The company operates from a 287,000 square-foot warehouse, providing approximately 10,000 products to 7,800 customers throughout Ohio and surrounding states. In September 2001 Abbott Foods was recognized by Institutional Distributor magazine as the Great Distributor Organization of the Year.

Charles H. Cotros, SYSCO's chairman and chief executive officer, said, "The addition of Abbott Foods will complement our existing broadline companies in Cleveland and Cincinnati. Their focus on branded products, as well as specialty products such as custom-cut steaks, seafood and produce, is also in line with SYSCO's growth strategies. I am excited about this acquisition and on behalf of all SYSCO associates I look forward to welcoming Larry Abbott and his entire organization into the SYSCO family."

Larry C. Abbott, president and chief executive officer of Abbott Foods Inc., said, "The opportunity to join forces with North America's leading foodservice distributor will enhance our procurement and growth opportunities, benefiting both our customers and employees. We share similar values and visions, and our entire organization looks forward to joining the SYSCO team."

The merged company will be known as Abbott SYSCO Food Services and will operate as one of SYSCO's autonomous operating companies from its current Columbus, Ohio, facility.

SYSCO is the largest foodservice marketing and distribution organization in North America, providing food and related products and services to approximately 415,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. The company generated sales of $23.4 billion for its fiscal year 2002 that ended June 29, 2002. SYSCO's operations are located throughout the United States and Canada and include broadline companies, specialty produce, meat and hotel supply operations and SYGMA, the company's chain restaurant distribution subsidiary.

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