Sysco to Acquire US Foods for $3.5 Billion

Sysco Corp. agreed to acquire closely held US Foods for $3.5 billion, adding brands from Cattleman’s meat to Devonshire desserts, in the largest food-distribution deal in eight years in North America. The shares jumped the most in 2 1/2 years.

Sysco will pay $3 billion in common stock, or about 13 percent of its shares, and $500 million in cash for US Foods to owners including KKR & Co. and Clayton, Dubilier & Rice LLC, according to a statement today. Bonds of US Foods soared.