Sysco, one of the world's largest food supply companies, is taking over one of its major rivals — US Foods. Sysco is buying the privately owned company for about $3.5 billion in cash and stock, according to MSN.com. The deal should boost Sysco's annual sales by about 46 percent to around $65 billion.

Along with the $3.5 billion, Sysco will assume or refinance about $4.7 billion in debt, which puts the total value of the deal at about $8.2 billion.

The buyout, which has been approved by the boards of both companies, should close by the third quarter of 2014, and should boost Sysco's profit after adjusting for acquisition-related costs and expenses. It's also expected to create annual cost savings of at least $600 million after three or four years, according to MSN.com.

The news caused Sysco shares to hit a record high today, jumping 26 percent.

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