But if the FTC approves, the transaction is expected to close in the third quarter of calendar year 2014. If so, the two national food distribution giants will morph into one behemoth, with annual sales of about $65 billion and an operating cash flow of about $2 billion, according to Sysco’s announcement.
During their conversation, Barnes thanked Seabrook officials for all the hard work they did in expediting the conditional approval of the expansion, which needed a nod from town officials to meet its Nov. 30 deadline with the owner of the Poland Springs property, for a purchase price of about $27 million.
U.S. Foods paid more than $30,000 in application fees to Seabrook during its siting plan process, which is not refundable, Manzi said. But if it entered into a deal for the real estate on Nov. 30 more significant funds may have changed hands.
“I don’t know exactly what their understanding was with Poland Springs,” Manzi said. “I think they had the property tied up until Nov. 30, and if they were to go forward with the purchase, by Nov. 30 it would require some serious earnest money paid by U.S.Foods. That could be in the millions, and that could be non-refundable.”
In mid-November, the Seabrook Planning Board gave its conditional approval of the U.S. Food deal which, a $62 million project, $27 million for the property and $35 million in renovations. The only thing that would have stopped the project, Barnes said at the time, was U.S. Foods Board of Directors not giving its approval.