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Document Preview Merger Agreement and Plan of Reorganization Under Section 368(a) of the Internal Revenue Code of 1986 [Amended] |
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Title: |
Merger Agreement and Plan of Reorganization Under Section 368(a) of the Internal Revenue Code of 1986 [Amended] |
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Entities: |
Sysco Corp.; U.S. Bancorp Piper Jaffray Inc.; U.S. Bancorp; Pepper Hamilton LLP; Guest Supply, Inc.; Sysco Food Services of New Jersey, Inc. |
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Date: |
2001 |
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Size: |
Preview shows 11KB of 212KB total |
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Price: |
$88 |
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ID: |
#310431 |
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UNDER SECTION 368(a) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
THIS MERGER AGREEMENT AND PLAN OF REORGANIZATION UNDER SECTION 368(a) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (the "Agreement"), dated January
22, 2001, by and among GUEST SUPPLY, INC., a New Jersey corporation (the
"Company"; the Company together with all of its Subsidiaries set forth on
Schedule 4.1(b)(i) are hereinafter collectively referred to as "Guest Supply"),
SYSCO CORPORATION, a Delaware corporation ("Sysco"); and SYSCO FOOD SERVICES OF
NEW JERSEY, INC., a Delaware corporation and a wholly-owned subsidiary of Sysco
("Merger Sub") (Sysco and Merger Sub are hereinafter collectively referred to as
the "Sysco Companies").
RECITALS
A. Guest Supply is in the following business ("Business"):
(i) manufacturing, packaging and distributing to the lodging industry,
nursing homes, cruise ships and others personal care guest amenities (which
include, among other items, shampoo, hair conditioners, soap, bath gel, and
mouthwash), housekeeping supplies, furnishings, room accessories and
textiles; and
(ii) manufacturing and packaging personal care products for consumer
products and retail companies.
B. The respective Boards of Directors of Sysco, Merger Sub and the Company
have each approved the acquisition of the Company by Sysco upon the terms and
the conditions set forth in this Agreement.
C. In furtherance of such acquisition, it is proposed that Merger Sub shall
make an exchange offer (the "Offer") to exchange shares of common stock, $1.00
par value ("Sysco Common Stock"), of Sysco for all of the issued and outstanding
shares of common stock, no par value ("Common Stock"), of the Company, including
the associated Company Rights (as defined in Section 4.5) (each share of the
Common Stock together with its associated Company Right, is hereinafter referred
to as a "Share" and collectively, as the "Shares") upon the terms and subject to
the conditions set forth in this Agreement.
D. Also in furtherance of such acquisition, the respective Boards of
Directors of Sysco, Merger Sub and the Company have each approved the merger of
Merger Sub with the Company ("Merger") upon the terms and subject to the
conditions set forth in this Agreement.
E. The respective Boards of Directors of Sysco, Merger Sub and the Company
have each determined that the Offer and the Merger and the other transactions
contemplated hereby are consistent with, and in furtherance of, their respective
business strategies and goals and are in the best interests of their respective
stockholders.
F. For federal income tax purposes, it is intended that the Offer and
Merger qualify as a reorganization under the provisions of Section 368(a) of the
Internal Revenue Code of 1986, as amended ("Code"), and that this Agreement
constitutes a plan of reorganization.
G. Sysco, Merger Sub and the Company desire to make certain
representations, warranties, covenants, each to the other, and agreements in
connection with the Offer and the Merger and also to prescribe various
conditions to the Offer and the Merger and the other transactions contemplated
by this Agreement.
H. The agreements, certificates and other documents listed on Schedule I
hereto have been executed and delivered prior to, or simultaneously with, this
Agreement.
A-1
{PAGE} 2
NOW, THEREFORE, in consideration of the representations, warranties,
covenants and agreements contained in this Agreement, the parties hereto agree
as follows:
ARTICLE 1
THE OFFER AND MERGER
1.1 The Offer; Merger Election. (a) Provided that this Agreement shall
not have been terminated in accordance with Section 7.1 and none of the events
set forth in Annex A hereto shall be existing (other than paragraphs (g), (i)
and (k) therein), Merger Sub shall, as promptly as practicable after the date
hereof, but in no event later than ten (10) business days after the date hereof,
commence (within the meaning of Rule 14d-2 under the Securities Exchange Act of
1934, as amended (the "Exchange Act")) the Offer. Each Share accepted by Merger
Sub in accordance with the Offer shall be exchanged for the right to receive
from Merger Sub the consideration determined in accordance with Section 1.2(A)
below (collectively, the "Offer Consideration)." The Offer shall be subject to
the condition that there be validly tendered and not withdrawn prior to the
expiration of the Offer such number of Shares which, when added to the Shares,
if any, beneficially owned by Sysco or Merger Sub, would constitute a majority
of the Shares outstanding on a fully diluted basis (the "Minimum Condition") and
to the other conditions set forth in Annex A hereto (any of which may be waived
in whole or in part by Merger Sub in its sole discretion except as otherwise
provided herein). Sysco and Merger Sub shall comply with the obligations
respecting prompt payment and announcement under the Exchange Act, and, without
limiting the generality of the foregoing, subject to the terms and conditions of
this Agreement, including but not limited to the conditions of the Offer, Merger
Sub shall, and Sysco shall cause Merger Sub to, accept for payment and pay for
Shares tendered pursuant to the Offer as soon as practicable after expiration
thereof. The obligations of Merger Sub to consummate the Offer and to accept for
payment and to pay for any Shares validly tendered on or prior to the expiration
of the Offer and not withdrawn shall be subject only to the conditions set forth
in Annex A hereto. Each of Sysco and Merger Sub expressly reserves the right to
waive the conditions of the Offer and to amend any of the terms and conditions
of the Offer; provided, that Merger Sub shall not without the prior written
consent of the Company (such consent to be authorized by the Board of Directors
of the Company (the "Company Board") or a duly authorized committee thereof) (i)
decrease the Offer Consideration, (ii) decrease the number of Shares sought,
(iii) change the form of consideration to be paid pursuant to the Offer as set
forth in Section 1.2 below, (iv) impose conditions to the Offer in addition to
those set forth in Annex A hereto, (v) amend any other term or condition of the
Offer in any manner adverse to the holders of the Shares, (vi) extend the
expiration date of the Offer, or (vii) waive the Minimum Condition or the
conditions set forth in subsection (f) or (h) of Annex A. Notwithstanding the
foregoing, Merger Sub may, without the consent of the Company, (A) extend the
Offer, if at the initial scheduled or any extended expiration date of the Offer
any of the conditions of the Offer shall not be satisfied or waived, until such
time as such conditions are satisfied or waived, (B) extend the Offer for any
period required by any rule, regulation, interpretation or position of the
United States Securities and Exchange Commission (the "SEC") or the staff
thereof applicable to the Offer, (C) extend the Offer for up to twenty (20)
business days if there have not been validly tendered and not withdrawn prior to
the expiration of the Offer such number of Shares that, together with Shares, if
any, beneficially owned by Sysco or Merger Sub, would constitute at least 90% of
the fully diluted Shares as of the date of determination, provided that all
other conditions to the Offer are satisfied or waived and (D) extend the Offer
for any reason for up to five (5) business days; provided, that no more than
three extensions in the aggregate shall be permitted under clauses (C) and (D)
of this sentence; provided, however, that notwithstanding the foregoing, unless
this Agreement has been terminated pursuant to Section 7.1 and, subject to
Section 1.1(c), Merger Sub shall extend the Offer from time to time in the event
that, at a then-scheduled expiration date, all of the conditions to the Offer
have not been satisfied or waived as permitted pursuant to this Agreement, each
such extension not to exceed the lesser of ten (10) additional business days or
such fewer number of days that Merger Sub reasonably believes is necessary to
permit the conditions to the Offer to be satisfied. In addition, the Offer
Consideration may be increased and the Offer may be extended to the extent
required by law, in each case without the consent of the Company.
Notwithstanding the foregoing or any other provision herein to the contrary, in
the event that the Minimum Condition has been satisfied and
A-2
{PAGE} 3
all other conditions set forth in Annex A have been satisfied or waived, then
Merger Sub shall, and Sysco shall cause Merger Sub to, accept for payment and
pay for all Shares tendered pursuant to the Offer and not withdrawn as soon as
practicable after the date that all such conditions have been satisfied or
waived, and nothing herein shall prohibit Merger Sub from making a subsequent
offer for Shares not so purchased upon the consummation of the Offer subject to
and in compliance with Rule 14d-11 of the Exchange Act (a "Subsequent Offer").
(b) As soon as practicable after the date of this Agreement, Sysco shall
prepare and file with the SEC a registration statement on Form S-4 under the
Securities Act of 1933, as amended (the "Securities Act"), to register the offer
and sale of Sysco Common Stock pursuant to the Offer and any Subsequent Offer
(the "Form S-4"). The Form S-4 will include a preliminary prospectus containing
the information required under Rule 14d-4(b) promulgated under the Exchange Act
(the "Preliminary Prospectus"). As soon as practicable on the date of
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