Sysco’s $29 B Jetro Acquisition Raises Debt to $33 B, Targets $250 M Synergies
Sysco plans to acquire Jetro Restaurant Depot for $29.1 billion, funded by a $22 billion bridge loan, raising net debt to $33 billion and leverage to 4.5x–5.0x EBITDA. Management projects $250 million annual cost synergies within three years, a pro forma $5.5 billion free cash flow engine, and Q3 sales up 3.0%.
1. Jetro Acquisition Details
Sysco announced on March 30 the acquisition of Jetro Restaurant Depot for $29.1 billion, structured as a standalone business segment with original leadership maintained under a coordinated autonomy model.
2. Synergy Pillars
The integration hinges on three synergy pillars: folding Jetro's $16 billion purchasing scale to drive $250 million in annual cost savings, using 60% of independent customers as micro-fulfillment hubs, and introducing $10 billion of Sysco specialty products into Jetro warehouses.
3. Financial Impact
Funding includes a $22 billion bridge loan that lifts net debt to $33 billion and leverage to 4.5–5.0x EBITDA. Pro forma free cash flow is expected to reach $5.5 billion, enabling leverage reduction by 1.0x within 24 months and funding 125 new Jetro locations.
4. Q3 Results and Outlook
In Q3 fiscal 2026, revenue grew 3.0% to $20.8 billion with adjusted EPS up 6.5% to $0.99, driven by AI360 CRM adoption and the Swap and Save initiative. Management targets 2.5% volume growth in Q4, a 120-basis-point acceleration on a two-year stack.