Sysco drops on $1 bln stock offering plans for Jetro Restaurant Depot acquisition
SYY•Shares fall after stock offering plan
Food distributor Sysco Corp's SYY.N shares were down 2.8% at $81.24 in extended trading after M&A-related equity raise news.
SYY announced a $1 bln stock offering to finance the pending acquisition of Jetro Restaurant Depot.
Houston, Texas-based SYY said in March it would buy the catering supplier in a $29 bln deal.
Underwriting and recent stock performance
Goldman Sachs and TD Secs are the lead bookrunners for the planned offering, joined by BofA, JP Morgan and Wells Fargo.
SYY has a $40 bln current market cap.
SYY stock closed up 0.4% at $83.54 on Monday. The stock is up about 13% year to date, outpacing the 8% advance in the S&P 500 Consumer Staples index .SPLRCS.
The average rating of 18 analysts is "buy"; the median price target is $90, according to LSEG data.
