With Brakes Group successfully integrated into US foodservice giant Sysco following its acquisition last February, CEO Ken McMeikan’s will step down this summer after an “amazing journey” turning round the wholesaler.
He will be replaced by US-based Sysco exec Ajoy Karna in April, in the role of senior vice president of International foodservice operations.
McMeikan joined Brakes from high street baker Greggs in 2013, and led a turnaround involving the acquisition of Davigel in France and Fresh Direct in the UK, as well as a number of operational changes that lead to a significant improvement in trading. In the last financial year before its acquisition by Sysco (to 31 December 2015) sales rose from £2.9bn to £3.3bn and profits increased 42% to £183m.
“After four years, and now 15 months since we did the deal with Sysco, and with good progress being made, now is the time to hand over to a successor,” said McMeikan.
“It’s been an amazing journey. We outperformed the market, and did so while addressing our profitability, to the point where Sysco wanted to own the company, because of our future plans and track record. I’m enormously proud of what we’ve done in the four years since I joined.
“It’s also satisfying given some people doubted it was possible. One of your sources in The Grocer described it as a ‘slow-motion car crash’. But it’s a very different business versus four years ago.
“We’ve combined three IT systems, built or acquired five regional DCs with one million sq ft, combined and consolidated our customer contacts centre, moved into ecommerce, and grown the business organically and through successful acquisition by an extra £1bn, while increasing profitability considerably.”
Sysco bought Brakes Group from Bain Capital for about £2.2bn, wiping out debts of about £1.6bn in the process.
“Brakes now has a very strong balance sheet,” added McMeikan. “Also, with Sysco’s firepower, there’s an opportunity to significantly expand through further acquisitions. I’ve left a strong pipeline of acquisitions because of the relationships we’ve built, and the success we’ve had with other acquisitions.”
McMeikan added that he had turned down a number of offers since the Sysco deal, but had wanted to focus on a successful integration before thinking about future plans, and said he would “take my time to consider” another CEO role. “It would have to be for the right company and the right opportunity, but I may follow what Allan Leighton did many years ago and take up some chairmanship roles,” McMeikan said. “It will be more about the opportunity and the company.”
Sysco said McMeikan would remain with the company for a brief transition period.
Sysco CEO Bill Delaney thanked McMeikan for his leadership and contribution to the successful transition of Brakes.
“Under Ken’s direction, Brakes Group has enjoyed solid progress,” said Delaney. “We wish him well in his future endeavours.”
In his new role, Karna will report to Sysco president and COO Tom Bené.
“Since joining Sysco in 2012, Ajoy has demonstrated strong leadership abilities and has had a positive impact on our overall business, both domestically and internationally,” said Bené.
“We will leverage Ajoy’s track record of driving results, strategic thinking and collaborative leadership style, in partnership with the solid leadership and deep operating experience of the Brakes team, to position us for continued growth across all of Europe.”
Prior to joining Sysco, Karna served in various leadership positions at PepsiCo and in numerous roles at Frito Lay and The Quaker Oats Company.
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