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Sysco to buy Jetro Restaurant Depot in $29 billion deal
Sysco will pay $21.6 billion in cash plus 91.5 million shares to acquire Jetro, expanding into the high-margin Cash & Carry market serving over 725,000 operators.
- On Monday, Sysco announced it will acquire Jetro Restaurant Depot for an enterprise value of $29.1 billion, deepening the nation's largest food distributor's reach into the price-sensitive independent restaurant market.
- Jetro operates 166 cash-and-carry warehouses across 35 states, serving more than 725,000 independent operators with a 30-year track record of EBITDA growth, making it the nation's largest cash-and-carry wholesaler.
- Under the deal's terms, Sysco will issue 91.5 million shares representing 19.1% of post-deal outstanding shares and utilize roughly $21 billion in new and hybrid debt to fund the $21.6 billion cash portion.
- Shares of Sysco tumbled more than 13% on Monday as investors reacted to the financing structure and the company's pause on its share-repurchase program while maintaining its dividend.
- Management projects $250 million in annualized net cost synergies within three years and aims to reduce net leverage by at least 1.0 times within 24 months of the expected 2027 closing.
35 Articles
35 Articles
Sysco Buys Restaurant Depot in $29 Billion Deal
Sysco, the nation’s largest supplier of food and other goods to restaurants and catering businesses, has struck a deal to acquire family-owned Jetro Restaurant Depot for $29.1 billion, including debt. The transaction, announced March 30, will be paid in a mix of cash and stock. Under the terms of the agreement, Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million shares of Sysco stock, leaving them with about 16 perc…
Here's Why Sysco's "Transformative" Acquisition Is Sinking Its Stock
Quick Read Sysco (SYY) is acquiring Jetro Restaurant Depot for $29.1 billion, combining 2025 revenues of $81 billion plus Jetro’s $16 billion to reach nearly $100 billion net revenue, with adjusted EBITDA rising 45% to $6.4 billion and $250 million in annualized cost synergies targeted within three years, while delivering mid- to high-single-digit EPS accretion in year one. US Foods (USFD) lacks Jetro’s higher-margin cash-and-carry channel and …
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