Broadline distributor will have annual sales of $65 billion.

In a $3.5 billion deal, broadline distributor Sysco Corporation (NYSE:SYY) has reached an agreement to acquire US Foods. Bill DeLaney, Sysco president and chief executive officer, will lead the combined company, which will operate under the Sysco name with its headquarters in Houston, Texas. When the deal closes, Sysco will have estimated annual sales of $65 billion.

Sysco will establish a team comprised of members of both companies to prepare for and oversee a comprehensive integration for employees, customers and suppliers.

As part of the transaction, Sysco will also assume or refinance US Foods' net debt, which is currently approximately $4.7 billion, bringing the total enterprise value to $8.2 billion.