US-based foodservice distribution company Sysco has agreed to acquire catering supplier Jetro Restaurant Depot in a $29.1bn transaction.
As agreed, Jetro Restaurant Depot shareholders will receive $21.6bn in cash proceeds and 91.5 million Sysco shares.
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Founded in 1976, Jetro Restaurant Depot is a wholesale cash-and-carry foodservice supplier catering primarily to small, independent restaurants and other small businesses.
The company runs 166 large warehouse-style stores in 35 states, serving more than 725,000 independent restaurants and foodservice operators.
The transaction will mark Sysco’s entry into the cash-and-carry channel.
Sysco CEO Kevin Hourican said: “We’re thrilled to combine two industry leaders to create a preeminent multichannel foodservice distribution platform.
“Together, Sysco and Jetro Restaurant Depot will enhance value for small independent restaurants and the consumers they serve by expanding access to more affordable, fresh food products and delivering more choice and convenience.”
Sysco intends to cover the cash element of the purchase with $21bn of new debt and hybrid debt instruments. An additional $1bn is expected to come from a combination of existing cash, equity, or equity-linked securities.
At closing, Sysco plans to issue shares representing around 19.1% of its outstanding stock to Jetro Restaurant Depot shareholders.
Following completion, those shareholders are expected to own approximately 16% of Sysco’s common equity.
Jetro Restaurant Depot will operate as a separate business segment within Sysco once the acquisition is finalised. The existing leadership team is expected to stay in place under Richard Kirschner, who will report directly to Hourican.
The company will continue to be based at its headquarters in Whitestone, New York.
In connection with the deal, two current Jetro Restaurant Depot directors, Bradley Fried and Stanley Fleishman, will join Sysco’s board of directors.
Jetro Restaurant Depot executive chairman Stanley Fleishman said: “Today’s announcement is an exciting moment for Jetro Restaurant Depot and a clear recognition of the strength of our business model, and the teams who have built it over the past 50 years.”
According to a Sysco statement, the combined business generated nearly $100bn in 2025 net revenue.
Sysco expects the deal to be mid-to-high single-digit EPS accretive in year one and low-to-mid teens accretive in year two.
Additionally, the merger is expected to deliver $250m in annualised net cost synergies within three years, primarily from procurement savings and inbound supply chain optimisation.
The company also plans to open more than 125 new Jetro locations over the next two decades. The transaction is expected to close by the third quarter of Sysco’s fiscal 2027, subject to customary closing conditions and regulatory approvals.
