Houston, Texas-headquartered Sysco Corporation, which is ranked as the leading global foodservice distribution company, has acquired J. Kings Food Service Professionals, a broadline distributor with approximately $150 million in annual sales.
Based in Holtsville, New York, the purchased company was founded by John King more than 45 years ago. Over the past four decades it has grown into to one of the leading independent broadline distributors in the New York area, also servicing customers in Connecticut and New Jersey. The majority of the company’s customers are independent restaurant operators, but it also serves institutional, retail and multi-unit customers.
“We are happy to welcome them into the Sysco family of businesses,” said Greg Bertrand, executive vice president of US foodservice operations. “As Sysco continues to focus on M & A as part of our strategic growth plan, we believe J. Kings, with its strong local presence, combined with Sysco’s scale and depth, will provide our customers with even more of what they need to be successful in the competitive New York area market.”
Kings’ executives will continue to manage the business, including J. Kings’ founder and chief customer officer, John King.
Improved Q4 and Annual Sales
Meanwhile, on August 12 the company announced financial results for its 13-week fourth quarter and fiscal year that ended on June 29, 2019.
“Sysco saw improved year-over-year performance in the fourth quarter and fiscal year 2019,” said Chairman and CEO Tom Bené. “We continue to focus on our customers and are furthering the progress of our transformative initiatives, which we believe will increase the ease of doing business with Sysco, position us well for the long-term and create value for our shareholders in fiscal year 2020 and beyond.”
Q4 sales increased 1.0% to $15.5 billion, while gross profit rose 2.1% to $3.0 billion, and gross margin increased by 21 basis points. Operating income advanced 5.4% to $720.5 million, adjusted operating income increased 6.6% to $818.1 million, EPS rose $0.18 to $1.03, and adjusted EPS increased $0.16 to $1.10.
During the fiscal year sales rose 2.4% to $60.1 billion, as gross profit increased 2.9% to $11.4 billion, and gross margin advanced by10 basis points. Operating income increased 0.7% to $2.3 billion, adjusted operating income advanced 7.9% to $2.7 billion, EPS rose $0.50 to $3.20, and adjusted EPS rose $0.41 to $3.55.
