Sysco's $29B Restaurant Depot Buyout: A New Era for Independents
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Syscos $29B Acquisition of Jetro Restaurant Depot: A New Era for Cash-and-Carry Wholesale
Sysco, the leading US food distributor, has made a significant move by acquiring Jetro Restaurant Depot, including its debt, for $29B. This deal expands Syscos reach into the cash-and-carry wholesale market, providing access to 166 locations nationwide, primarily catering to budget-conscious independent eateries. The acquisition, valued at $21.6B in cash and $9.15B in Sysco shares, gives sellers a 16% stake in the new entity. Syscos CEO, Kevin Hourican, sees this as a boon for small operators, promising cheaper fresh foods, more options, and easier access. The deal aligns with a broader trend of mergers among consumer giants, aiming to achieve scale amidst soft demand and high costs. Sysco anticipates mid- to high-single-digit earnings per share growth in the first full year post-closing, targeting the third quarter of fiscal 2027. Despite pausing share buybacks, Sysco remains committed to its annual profit outlook. With competitors like US Foods also considering mergers, Sysco is positioning itself to dominate distribution, closely monitoring the impact on independents nationwide.
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