Sysco (NYSE:SYY), North America’s largest foodservice distributor, announced an agreement to acquire Jetro Restaurant Depot, a leading cash-and-carry wholesaler serving independent restaurants and foodservice operators, for approximately $29.1 billion in a combination of cash and stock.
The transaction is expected to create a combined entity with nearly $100 billion in 2025 revenues.
It will add Jetro’s network of 166 Cash & Carry warehouses to Sysco’s distribution platform, significantly expanding its presence in the cash-and-carry channel and broadening its customer reach among independent operators.
Sysco anticipates the deal will be immediately accretive to earnings per share and operating margins.
The company targets approximately $250 million of annualized run-rate synergies within three years of closing.
To fund the acquisition, Sysco plans to raise roughly $21 billion through new debt and hybrid securities, supplemented by about $1 billion of cash and equity.
The company intends to pause share buybacks to focus on deleveraging while maintaining its dividend and investment-grade credit ratings.
The transaction is expected to close by the third quarter of Sysco’s fiscal 2027, subject to customary regulatory approvals and closing conditions.