Sysco has agreed to acquire Jetro Restaurant Depot in a $29 billion deal, aiming to expand its footprint in the price-sensitive independent restaurant segment.
The transaction includes debt and will be financed through $21 billion in new and hybrid debt, alongside $1 billion in cash and equity.
Sysco shares slipped about 2% in premarket trading following the announcement, reflecting investor concerns over the deal’s financing structure.
Restaurant Depot operates a cash-and-carry wholesale model, selling directly to business owners and complementing Sysco’s large-scale distribution network.
Under the terms, Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares.
They are expected to own approximately 16% of the combined company after closing, strengthening alignment between both businesses.
Sysco also announced a pause in its share buyback program while reaffirming its annual financial outlook.
The acquisition builds on Sysco’s strong demand across its core offerings, including meat and frozen products, reinforcing its position in a competitive foodservice market.
