Sysco is set to acquire Jetro Restaurant Depot in a deal valued at approximately $29.1 billion. The agreement will see Jetro’s shareholders receive $21.6 billion in cash along with 91.5 million Sysco shares, marking a significant move for Sysco into the high-margin Cash & Carry channel.
Jetro Restaurant Depot, which operates 166 large-format warehouse stores across 35 states, generated around $16 billion in revenue for the calendar year 2025. This acquisition is expected to enhance Sysco’s distribution capabilities and market presence.
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 was echoed by Stanley Fleishman, CEO of Jetro, who noted, “Today’s announcement is an exciting moment for Jetro Restaurant Depot and a clear recognition of the strength of our business model.”
The combined company 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 post-acquisition.
To finance the cash portion of the transaction, Sysco plans to utilize $21 billion of new debt and hybrid debt, along with $1 billion in cash on hand. This strategic move is seen as a way to bolster Sysco’s competitive edge in the foodservice distribution market.
Founded in Brooklyn in 1976, Jetro Restaurant Depot has established itself as a key player in the foodservice industry, catering primarily to restaurants and food businesses. The acquisition is viewed as a transformative transaction that will unlock meaningful long-term value for the combined company, according to Jonathan Sokoloff, a representative involved in the deal.
As the acquisition progresses, industry observers are keenly watching for further developments and details regarding the integration of the two companies. Details remain unconfirmed.
