Sysco acquires Pallas family business

THE US goods distribution giant Sysco Corporation has acquired Pallas Foods of Newcastle West, Co Limerick, for an undisclosed sum.

Pallas Foods is a family-run business food distribution business with more than 6,000 customers and 7,000 products.

Employment averaged 500 over the year, and last year the group achieved sales of e155 million.

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities.

Its product range also includes equipment and supplies for the food service and hospitality industries.

It has 180 distribution facilities serving more than 400,000 customers.

For the fiscal year to June 28, 2008, the company generated more than $37 billion in sales.

Headquartered in Texas, it is listed on the New York Stock Exchange.

Pallas Foods commenced operations in the early 1980s as a family business and has grown into a diversified food service distribution company.

Pallas operates its broadline distribution business from its Newcastle West facility, supplemented by eight operating depots throughout Ireland.

“The acquisition of Pallas Foods represents a partnership with a quality management team,” said Ken Spitler, Sysco’s vice chairman, president and chief operating officer.

“This opportunity allows Sysco to further explore international growth with a well-regarded team that provides the high-quality service standards that Sysco customers are accustomed to.”

In connection with the acquisition, the most senior executives of Pallas have signed long-term employment contracts with Sysco.

Commenting yesterday Tim Geary, the founder of the Irish group, said: “By joining Sysco, we have opened up access to a large number of quality assured products for our customers”.

This deal positions the company for long-term growth, he said.

“We look forward to strengthening our position as the industry leader in Ireland,” he said.

Barry O’Leary, chief executive of IDA Ireland, welcomed Sysco’s arrival to Ireland and hoped it would be very positive for all sides.

“I am delighted to see a highly regarded company like Sysco invest in Ireland through this acquisition”, he said.

“We look forward to establishing a good working relationship with them and my hope is that this announcement today only signals the beginning of a very fruitful longer term relationship between Sysco and Ireland.”