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Wow123

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Reply with quote  #1 
Came across some water cooler talk about a possible merger between these 2 giants. Mclanew is as large if not bigger than sysco. So how would this work and who would buy who. Berkshire Hathaway has all the money in the world.
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commoditiesguy

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Reply with quote  #2 
Quote:
Originally Posted by Wow123
Came across some water cooler talk about a possible merger between these 2 giants. Mclanew is as large if not bigger than sysco. So how would this work and who would buy who. Berkshire Hathaway has all the money in the world.

Not only does BH have all the money in the world - they also basically own Heinz Kraft.  That would make for interesting discussions around the boardroom table.....
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laser

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Reply with quote  #3 
Sysco is probably not interested in owning Mclanes. I would think BH would more interested in Sysco on their own and not as a combined company. Buffett likes cash flow, which Sysco does well. The big question would be whether BH would pay what Sysco shareholders will expect.
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FoodPimp123

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Reply with quote  #4 
I can't see Sysco buying McLane, most of their business is low margin. Why would Sysco want that?

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broadliner

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Reply with quote  #5 
It's all about cases on the truck, and possibly having access to products they didn't stock before. Sysco has a fairly large footprint. Might be a good move for smaller, regional chains.

Quote:
Originally Posted by FoodPimp123
I can't see Sysco buying McLane, most of their business is low margin. Why would Sysco want that?
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Foodman

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Reply with quote  #6 
Could see SYGMA and McLane merger, similar business models
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isellketchupforaliving

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Reply with quote  #7 
Sysco stock is up about 5% over the last couple days. Something big is going on, maybe we will find out Monday on their earnings call.
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DistributionDiva

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Reply with quote  #8 
I could see McLane buying Sygma. Sysco has been trying to sell it for at least five years off and on. Ironically, that's the most sophisticated group but their margins are just too thin and it makes shareholders nervous.
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commoditiesguy

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Reply with quote  #9 
I remember when US Foods tried to spin off a Sygma-style business unit called "North Star Foodservice" as part of their "rebranding" efforts.
Reality was, they wanted to dump it and/or show their true broadline divisions were much more profitable and ready to be sold.
They eventually rolled it back into US Foodservice.
And round and round we go...........
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