Davis Polk advised the counterparty in connection with a fixed-dollar, uncollared accelerated share repurchase transaction it entered into with Sysco Corporation, pursuant to which Sysco is repurchasing $1.5 billion of its common stock. Under the terms of the transaction, Sysco is expected to receive an initial delivery of approximately 32 million shares of its common stock and is expected to receive delivery of an additional number of shares at maturity of the transaction, which is expected to be no later than May 2016. The total number of shares to be repurchased under the transaction will be based generally upon the volume-weighted average share price of Sysco’s common stock during the term of the transaction.  

Sysco is the largest North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. Sysco provides products and related services to approximately 425,000 customers, including restaurants, health care and educational facilities, lodging establishments and other foodservice customers.   

The Davis Polk equity derivatives team included partner John M. Brandow and associate Mark J. DiFiore. Partner Michael Farber provided tax advice. All members of the Davis Polk team are based in the New York office.  

 

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