Sysco has announced its acquisition of Jetro Restaurant Depot in a deal valued at approximately $29.1 billion. This strategic move allows Sysco to enter the high-margin Cash & Carry channel, significantly expanding its market presence.
Under the terms of the agreement, Jetro Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Jetro, which operates 166 large-format warehouse stores across 35 states, generated approximately $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 acquisition is expected to yield approximately $250 million in annualized net cost synergies within the first three years following the closing.
Sysco anticipates that the transaction will be mid to high single-digit accretive to earnings per share in the first year after the deal closes. To finance the cash portion of the acquisition, Sysco plans to utilize $21 billion of new debt and hybrid debt, along with $1 billion in cash on hand.
Stanley Fleishman, CEO of Jetro Restaurant Depot, remarked, “Today’s announcement is an exciting moment for Jetro Restaurant Depot and a clear recognition of the strength of our business model.” This sentiment is echoed by Jonathan Sokoloff, who noted, “This transformative transaction represents a compelling opportunity that we believe will unlock meaningful long-term value for the combined company.”
Jetro Restaurant Depot, founded in Brooklyn in 1976, has established itself as a key player in the foodservice distribution sector. The acquisition marks a significant milestone for Sysco as it seeks to enhance its offerings and market share.
As the deal progresses, industry observers are keenly watching how this merger will reshape the competitive landscape in foodservice distribution. Details remain unconfirmed regarding the timeline for the transaction’s completion and its regulatory approval process.
