Sysco is poised to acquire Jetro Restaurant Depot in a landmark deal valued at approximately $29.1 billion. This acquisition allows Sysco to enter the high-margin Cash & Carry channel, significantly expanding its market presence.
As part of the agreement, Jetro Restaurant Depot shareholders will receive $21.6 billion in cash along with 91.5 million Sysco shares. Jetro, which operates 166 large-format warehouse stores across 35 states, generated around $16 billion in revenue for the calendar year 2025.
Kevin Hourican, Sysco’s CEO, expressed enthusiasm about the merger, stating, “We’re thrilled to combine two industry leaders to create a preeminent multi-channel foodservice distribution platform.” This sentiment reflects the strategic importance of the acquisition for both companies.
The combined entity is projected to realize approximately $250 million in annualized net cost synergies within the first three years following the closing of the deal. Furthermore, Sysco anticipates that the transaction will be mid to high single-digit accretive to earnings per share in the first year after the acquisition.
To finance this substantial acquisition, Sysco plans to utilize $21 billion of new debt and hybrid debt, alongside $1 billion in cash on hand. This financial strategy underscores the company’s commitment to enhancing its operational capabilities.
Stanley Fleishman, CEO of Jetro, remarked, “Today’s announcement is an exciting moment for Jetro Restaurant Depot and a clear recognition of the strength of our business model.” This merger is expected to bolster Jetro’s existing operations while integrating Sysco’s extensive distribution network.
Jonathan Sokoloff, a representative involved in the transaction, noted, “This transformative transaction represents a compelling opportunity that we believe will unlock meaningful long-term value for the combined company.” Such statements highlight the anticipated benefits of this merger.
Founded in Brooklyn in 1976, Jetro Restaurant Depot has established itself as a key player in the foodservice distribution sector. This acquisition marks a significant chapter in Sysco’s growth strategy, positioning it to better compete in a rapidly evolving market.
As the deal progresses, industry observers will be closely monitoring how this acquisition impacts both companies and the broader market dynamics. Details remain unconfirmed regarding the timeline for the completion of the acquisition and its subsequent effects on operational strategies.