Nelson Peltz's Trian Partners takes huge stake in Sysco Corp

Sysco Corp shares rose after Nelson Peltz's Trian Partners announced that it would purchase a 7 percent stake in the company, making Trian the largest individual shareholder.
By Aaron Sims | Aug 15, 2015
Sysco Corporation's stockpopped upthis week after a bumpysummer.Nelson Peltz's Trian Partners announced that they will acquirea 7 percent stake in the food service company, which is currently worth $1.6 billion. According to a report from CNBC, Trian will purchasenearly 42 million shares of the company.

Trian is posturedto be the largest individual shareholder in Sysco after a 13-D filing disclosed the dealthis Friday.Sources indicatedthat Trian will probablytryto seek board representation, but nobody knowsif Nelson Peltz himself would takea seaton the company's board.

Sysco's stock jumpedup after news ofthe announcement broke, trading at 8 percent above theday before.

Trian will begin working toimprove margins and return more capital to shareholders of the food service corporation. Peltz has years of experience in the food industry, and currently owns stakes in Kraft, Mondelez, Wendy's and Pepsi.

Sysco shares haveperformedpoorlyover the past five years, and Trian seizedthe opportunity to collaborate with the struggling food service company.

Sysco attempted to merge with US Foodsin June, but wasdeniedby regulators,and cost shareholders bore the brunt of the cost. Sysco offereda separation fee of $300 million to US Foods and another $12.5 million was given to Performance Food Group. The company's $3 billion share buyback didn't help with the bottom line either.

Investors will still have to wait until Friday to seethe future of the company unfold, when board nominations are due,but the company is expected to improve performance with Peltz's help.


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