Sysco is buying the food distributor US Foods for about $3.5 billion in cash and stock.
Under the terms of the agreement announced Monday, Houston's Sysco will pay $3 billion in common stock and $500 million in cash. It will also assume or refinance about $4.7 billion in debt.
That puts the total value of the deal at about $8.2 billion. When the acquisition closes, Sysco will have annual sales of about $65 billion.
Sysco President and CEO Bill DeLaney said that the two companies have highly complementary core strengths including large product portfolios.