Brakes, the London-based food supplier that had been considering a flotation, has been sold to US company Sysco in a deal worth $3.1bn (£2.2bn).
Brakes is majority owned by the private equity group Bain Capital, which took the company private for about £1.3bn in 2007.
Bain postponed a meeting with investors considered most likely to participate in an initial public offering for Brakes in the latter part of January, leading to speculation that another option was being given top priority.
The IPO market has made a difficult start in London in 2016, with fewer deals getting off the ground, and those companies that have succeeded, such as CMC Markets and Clydesdale, only doing so at modest prices.
Ken McMeikan, the Brakes chief executive, denied the group had ever entirely ruled out a float. He said he had been talking to potential IPO investors as recently as last Monday and that then “a fantastic offer came in”.
The deal, which is expected to add to earnings immediately, includes the repayment of about $2.3bn of Brakes’ debt, Sysco said.
Brakes – which has operations in the UK, Ireland, France, Sweden, Spain, Belgium and Luxembourg – will operate as a standalone company within Sysco.
The combined company is expected to generate annualised sales of about $55bn. The Brakes business will continue to be led by McMeikan.
“We look forward to welcoming Brakes, its 15,000 employees, and Ken McMeikan and his highly respected leadership team to the Sysco family of companies,” said Bill DeLaney, Sysco’s chief executive.
Brakes Group was founded as Brake Bros (Poultry Packers) Ltd in 1958 by brothers William, Frank and Peter Brake as a poultry supplier to caterers across Britain.
Sysco dropped its 18-month pursuit of smaller rival US Foods last year after the Federal Trade Commission won a lawsuit to block the $3.5bn deal.
