Sysco Corporation said it will acquire Jetro Restaurant Depot in a transaction valued at $29.1 billion including debt, a move that prompted the company’s shares to trade over 3% lower in pre-market action on Monday. Under the terms, Jetro shareholders will receive $21.6 billion in cash plus 91.5 million shares of Sysco common stock.
The purchase price equates to 14.6 times Jetro’s operating income on a 2025 basis. Jetro operates 166 warehouse-format stores across 35 states and supplies more than 725,000 independent restaurants and foodservice operators. For calendar year 2025, the company reported roughly $16 billion in revenue and about $2.1 billion in EBITDA.
To fund the cash component of the deal, Sysco intends to raise $21 billion in new debt and hybrid debt, supplemented by $1 billion drawn from cash on hand or equity securities. After closing, holders of Jetro stock are expected to own approximately 16% of Sysco’s outstanding common shares.
The companies project about $250 million in annual cost synergies to be achieved within three years following the acquisition, with the bulk of those savings expected to come from procurement efficiencies and supply chain optimization. Jetro will remain a standalone business segment within Sysco and continue to be headquartered in Whitestone, New York.
Sysco’s market capitalization is roughly $39 billion. The announced structure combines a significant debt issuance with an equity component and positions Jetro shareholders as substantial minority owners of the combined company.
Clear summary
Sysco confirmed a $29.1 billion acquisition of Jetro Restaurant Depot, funded primarily through $21 billion of new debt and hybrid debt plus $1 billion of cash or equity, with Jetro shareholders receiving $21.6 billion in cash and 91.5 million Sysco shares. The deal values Jetro at 14.6 times 2025 operating income; Jetro will operate as a standalone segment within Sysco and the firms expect $250 million of annual cost synergies within three years.
Key points
- Transaction size and structure: $29.1 billion including debt, with $21.6 billion cash and 91.5 million Sysco shares issued to Jetro shareholders.
- Business scale: Jetro runs 166 warehouse stores in 35 states and serves more than 725,000 independent restaurants and foodservice operators, reporting about $16 billion in revenue and $2.1 billion in EBITDA in 2025.
- Funding and ownership: Sysco will fund the cash portion with $21 billion in new debt and hybrid instruments plus $1 billion from cash or equity; post-deal, Jetro shareholders would hold roughly 16% of Sysco common stock.
Risks and uncertainties
- Financing risk: The cash portion relies on $21 billion of new debt and hybrid debt, which affects leverage and borrowing profiles in the credit markets.
- Execution and realization risk: The companies expect about $250 million in annual cost synergies within three years, an outcome that remains subject to execution and timing.
- Market reaction and stock volatility: Sysco shares traded over 3% lower in pre-market trading following the confirmation of the deal, indicating near-term investor uncertainty.
Sectors impacted
- Foodservice distribution and wholesale retailing.
- Supply chain and procurement operations within food and beverage supply chains.
- Debt and credit markets given the planned $21 billion debt issuance.