Global food products giant Sysco (NYSE:SYY) has agreed to acquire Edward Don & Company (DON), a leading name in the distribution of food service equipment, supplies, and disposables.
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Chicago-based DON caters to a range of restaurants, food services, and other clients in the U.S. The company boasts over 1.4 million square feet of distribution centers and office space in the U.S. and generates nearly $1.3 billion in revenue annually. The strategic transaction is expected to help Sysco add new capabilities and a diverse set of offerings to its existing businesses.
The deal will enable Sysco to create a specialty Equipment and Supplies platform that can offer better selection and service to its clients. The transaction remains subject to closing conditions, and upon closure, DON will function as a standalone specialty division under the Sysco umbrella.
What is the Target price for SYY?
Overall, the Street has a Strong Buy consensus rating on Sysco. The average Sysco price target of $85.50 implies a substantial 33% potential upside. That’s after a nearly 12% slide in the company’s shares over the past year.
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