Competition and Markets Authority to investigate Sysco takeover of Kent Frozen Foods

The competition regulator is investigating a takeover of wholesaler Kent Frozen Foods.

Sysco Corporation, which has global sales of $55 billion (£39bn), announced its acquisition of the Aylesford-based firm, known as kff, a fortnight ago.

However, the Competition and Markets Authority has begun an inquiry into the deal to see if it will give the Houston-headquartered corporation too much power.

Frozen food distributor kff is based in Aylesford
Frozen food distributor kff is based in Aylesford

It is the second time Sysco has targeted food businesses in the county within 18 months.

It acquired Ashford-based catering supplier Brakes Group in 2016 in a deal worth $3.1 billion (£2.2bn).

Under its latest planned acquisition, kff would operate as an independent entity but with the support of Sysco, the world’s largest foodservice company, giving it access to its other UK and European businesses where appropriate.

Announcing the planned deal, senior vice president Ajoy Karna said: “Kent Frozen Foods will complement Sysco’s other UK businesses perfectly.

“Our businesses share many values, including a strong family heritage and customer-led culture and will benefit from complementary strengths in product offering and geography.

“The management team at Kent Frozen Foods has done a fantastic job building their business, which focuses heavily on independent customers, making it a perfect addition to our portfolio of businesses in the UK.”

kff, which also has a distribution centre in Oxfordshire, made revenues of £47 million in 2016.

Chief executive Chris Beckley said: “For our business, our colleagues and customers, having the added benefit of support from the world’s largest foodservice company presents an exciting and positive time ahead for all of us.”

The Competition and Markets Authority has invited businesses to comment on the proposed takeover by February 9.

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More