U.S. Foods Needs to Boost Its Valuation Quickly for Private Equity Owners
SEAFOODNEWS.COM [Crain's Chicago Business] By Peter Frost - June 2, 2015 -
For a year and a half, the Rosemont-based food distributor has been tied up with its largest competitor, Sysco, in a pending deal to create an industry giant with nearly $70 billion in sales and about 25 percent of the national market.
Karen Short, an analyst at Deutsche Bank said with its private-equity owners into their eighth year of ownership, much longer than a standard investment, US Foods needs to improve its performance in short order to boost its valuation
“These days, PE is exiting investments sooner and sooner,” she says. “They took a chance with Sysco, and unfortunately it didn't work out. Where do they go from here? I don't know, frankly.”
Full Story »