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Sysco to Buy Jetro for $29 Billion, Bolstering Restaurant Reach
30 Mar
Summary
- Sysco is acquiring Jetro Restaurant Depot for $29 billion.
- The deal aims to expand Sysco's reach among price-conscious restaurants.
- Sysco will fund the acquisition using debt and cash on hand.
Sysco, the top U.S. food distributor, has agreed to purchase catering supplier Jetro Restaurant Depot for $29 billion, a deal that includes debt.
The acquisition is designed to extend Sysco's influence within the segment of price-conscious independent restaurants. The company plans to finance this significant transaction through $21 billion in new and hybrid debt, supplemented by $1 billion in cash and equity.
Jetro Restaurant Depot operates on a wholesale cash-and-carry model, contrasting with Sysco's delivery network. This acquisition aligns with a broader trend of consolidation in consumer-facing industries as companies seek scale amid fluctuating demand and rising costs.
Upon closing, expected by the third quarter of Sysco's fiscal 2027, the combined entity anticipates a mid- to high-single-digit increase in earnings per share during the first year. Sysco also confirmed it is pausing its share repurchase program and reaffirmed its annual forecasts.
