Sysco to Buy Restaurant Depot for $29 Billion to Target Independent Eateries

2026-03-30 companies

Houston, Monday, 30 March 2026.
Sysco is acquiring wholesale supplier Jetro Restaurant Depot for $29.1 billion. The strategic move targets independent restaurants and includes plans to open over 125 new locations nationwide.

A Strategic Leap into the Cash-and-Carry Market

On March 30, 2026, Houston-based food distribution titan Sysco Corporation (NYSE: SYY) formalized an agreement to acquire Jetro Restaurant Depot [4][5][7]. The transaction, carrying an enterprise value of approximately $29.1 billion, represents a major consolidation in the wholesale food supply sector [4][7]. To fund the acquisition, Sysco will deploy $21 billion in new and hybrid debt, alongside $1 billion in cash and equity [1][7]. Under the terms of the deal, shareholders of the closely held Jetro Restaurant Depot will receive $21.6 billion in cash and 91.5 million shares of Sysco stock [1][3][4]. Upon the anticipated closing by the third quarter of Sysco’s fiscal year 2027, these existing shareholders will retain an approximate 16% ownership stake in the combined entity [1][5][7].

Financial Synergies and Market Reaction

The financial profile of Jetro Restaurant Depot adds substantial weight to Sysco’s portfolio. In calendar year 2025, Jetro generated roughly $16 billion in revenue, $2.1 billion in EBITDA, and $1.9 billion in free cash flow [4][5][7]. Adding Jetro’s $16 billion in revenue to Sysco’s $81 billion base represents an approximate 19.753% top-line expansion based on 2025 figures [4][7]. Based on Sysco’s closing share price of $81.80 on March 27, 2026, the $29.1 billion enterprise value represents a multiple of 14.6 times Jetro’s operating income [4][6][7]. When combined, the two companies generated nearly $100 billion in annual net revenues and approximately $6.4 billion in adjusted EBITDA during 2025 [5][7]. Despite these robust figures, market reaction on the morning of March 30, 2026, was cautious, with Sysco shares trading down between 3% and nearly 5% in premarket activity [1][6].

Leadership and Long-Term Expansion Plans

Integration of the two food-service giants will be structured to preserve Jetro’s existing operational strengths. Following the close, Jetro Restaurant Depot will function as a standalone business segment within Sysco and will maintain its current headquarters in Whitestone, New York [4][7]. Leadership continuity is a priority; Richard Kirschner will remain at the helm of Jetro Restaurant Depot, reporting directly to Hourican [7]. Additionally, the corporate governance structure will evolve, as Jetro executives Sir Bradley Fried and Stanley Fleishman are slated to join Sysco’s Board of Directors [7].

Sources

Mergers and acquisitions Food distribution