Sysco Divests Davigel Spain Division to METRO AG
SPAIN - Sysco is kicking off the new year with a turn in strategy as the foodservice operator has divested its Davigel Spain operation to METRO AG. Sysco France, Davigel Spain, and METRO’s Spanish business (MAKRO Spain) signed a long-term supply agreement which provides continued access to Davigel’s unique product catalogue. The financial details of the transaction have not been disclosed.
“Davigel Spain is an ideal complement for our existing Spanish operations in terms of assortment mix, customer groups, and business model. The acquisition will help us to strengthen our product proposition, as well as to gain access to chained customer groups especially on the Canary and Balearic Islands. As such, we expect to generate synergies mainly in purchasing and assortment via the contracted supply agreement. With this transaction, METRO continues its journey in consolidating the wholesale and FSD (Food Service Delivery) markets in Europe. Following the acquisition of Aviludo in Portugal in October, Davigel Spain is the second acquisition this year. Playing an active consolidator role further solidifies our strong position in the region,” says Olaf Koch, CEO of METRO AG.
Davigel Spain is a well-established foodservice distribution company in Spain with approximately $42.9 million (€35 million) in sales (as per FY-end June 2019). The company was founded in 1988 and today supplies more than 4,000 customers mainly on the Balearic and Canary Islands. According to a press release, more than 70 percent of all customers are chained hotels, while independent restaurants and Horeca represent around 30 percent of total sales. The company holds exclusive rights in Spain to certain products from Sysco France’s product assortment, which predominantly consists of elaborate or ready-to-eat frozen products.
Davigel Spain is a strategic addition to the METRO portfolio in Spain, which already includes MAKRO, with a leading position in the Spanish wholesale market. MAKRO Spain operates 37 stores spread over 15 regions, serving more than 900,000 total customers.
How will this deal position Sysco for further growth in the U.S.? And will that growth be led by a fresh produce expansion? Stay tuned as we at ANUK report.