- The deal will enable Sysco to cater to independent restaurants that prefer in-store purchasing.
- Sysco expects the acquisition to be mid- to high-single-digit EPS accretive in the first year.
- Sysco plans to maintain Jetro as a separate segment with its New York leadership team.
Sysco Corp. (SYY) has agreed to acquire Jetro Restaurant Depot, a cash-and-carry wholesaler catering to smaller foodservice operators, in a deal valued at roughly $29.1 billion.
As part of the deal, Jetro Restaurant Depot investors are set to receive $21.6 billion in cash along with 91.5 million shares of Sysco stock.
Targeting The Lucrative Cash-And-Carry Segment
The move gives Sysco entry into the cash-and-carry segment, a space known for steady demand and higher margins, particularly among independent restaurants that prefer in-store purchasing over delivery-based models.
“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.”
-Kevin Hourican, Chair Of The Board and CEO, Sysco
Together, the two companies posted close to $100 billion in net revenue for 2025, along with roughly $6.4 billion in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and $5.5 billion in free cash flow.
Sysco stock traded over 1% lower in Monday’s premarket. On Stocktwits, retail sentiment around the stock flipped to ‘bullish’ from ‘neutral’ territory the previous day. Message volume changed to ‘extremely high’ from ‘high’ levels in 24 hours.
Financial Upside And Synergies
Sysco anticipates the deal will boost earnings per share by a mid- to high-single-digit percentage in the first year after closing, and by a low- to mid-teen percentage in the second year post-close.
“The combined company will have increased purchasing efficiencies, enabling lower prices for more customers,” added Hourican.
Sysco plans to expand the acquired business by opening more than 100 additional warehouse locations over time, targeting underserved regions. Following the acquisition, Jetro Restaurant Depot will continue operating as a separate segment within Sysco, maintaining its leadership team and headquarters in New York.
For fiscal 2026, Sysco reaffirmed its forecast of 3% to 5% sales growth, with adjusted earnings per share (EPS) expected near the top of the $4.50 to $4.60 range.
SYY stock has gained 11% year-to-date.
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