Overview
- Sysco, which announced the agreement Monday, will acquire Jetro Restaurant Depot for about $29.1 billion including debt to enter the cash-and-carry wholesale channel.
- Restaurant Depot runs 166 warehouse stores in 35 states where independent restaurant owners pick up supplies themselves to save on price and restock quickly.
- Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares, giving them roughly 16% of the combined company after a planned close by the third quarter of Sysco’s fiscal 2027.
- Sysco plans to raise about $21 billion in new and hybrid debt, pause share buybacks, keep its dividend, target at least a one‑turn cut in net leverage within 24 months, and deliver immediate EPS accretion with about $250 million in annual cost synergies within three years.
- Sysco shares fell after the announcement as investors focused on the added borrowing, and the tie-up will face regulatory review that recalls the company’s blocked US Foods deal in 2015.