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Update: Sysco Announces Divestiture In Attempt To Close US Foods Acquisition And Meets Earnings Estimates

In early February 2015, Sysco (NYSE:SYY) announced second-quarter 2015 adjusted earnings of 41 cents, an increase of 5.1 percent from the year-ago quarter as an increase in sales offset ongoing cost pressures. SYY's revenue increased 7.6 percent from the year-ago quarter to $12.087 billion driven by 3.6 percent volume growth (including acquisitions). The company's gross profit increased 6.1 percent to $2.1 billion and gross margins decreased 23 basis points to 17.25 percent due to such ongoing cost pressures. SYY's cash and cash equivalents were $4.91 billion as compared to $384.9 million three months earlier. The company's long-term debt was $7.25 billion as compared to $2.65 billion at the end of the prior quarter. In addition to the company's earnings announcement, SYY announced their decision to divest 11 facilities of US Foods to Performance Food Group, contingent upon the closing of their proposed merger with US Foods. This announced divestiture may serve as an answer to the U.S. Federal Trade Commission's concerns regarding SYY's acquisition of US Foods for approximately $8.2 billion, inclusive of debt. SYY shares fell almost 2 percent on the date of the company's earnings and divestiture…