Sysco buys rival foodservice firm Brakes Group for $3.1 billion

Food service distributor Sysco (SYY) will buy Brakes Group, it's European counterpart, in a deal valued at $3.1 billion.

The acquisition, which includes repaying roughly $2.3 billion of Brakes' debt, was announced Monday.

Aligning with Brakes will allow Sysco to become more dominant in the UK and Europe.

Brakes will continue to operate as a standalone entity, and if it receives necessary regulatory approvals, the deal is expected to close before July.

"This transaction will unite Sysco with a leading food service distributor in Europe  with demonstrated capability to sustainably grow," Ken McMeikan said in a statement.