HOUSTON Sysco Corp., a foodservice marketing and distribution company, plans to buy Guest Supply, a specialty distributor to the lodging industry, in a stock deal that could be worth up to $203 million. Depending on the average closing value of Syscos stock for a period prior to the expiration of Syscos order, the company will pay between $172 million to $203 million for Guest Supply. The price of the deal hinges on the average closing value of Syscos stock for fifteen consecutive trading days, ending on the trading day five days prior to the expiration date of its offer.
If Sysco shares fall below an average trading price of $22 each, each Guest Supply share will be equal to 1.1818 Sysco shares. If Sysco shares finish the period with an average trading value above $30 each, each Guest Supply share will be equal to 0.8667 Sysco shares. Guest Supply will function as an autonomous operating entity and its current management will continue to operate the company, the companies said in a joint statement. (1/22/01)