Sysco to Acquire Jetro Restaurant Depot in $29.1bn Deal with $21bn Debt
Sysco is acquiring Jetro Restaurant Depot in a $29.1bn deal comprising $21.6bn cash and 91.5 million shares, financed with $21bn new debt and $1bn in cash or equity, issuing shares equal to 19.1% of its stock to Jetro owners who will hold 16% post-close. Jetro’s 166 warehouses in 35 states serving 725,000 customers will join Sysco, creating a combined business with nearly $100bn in 2025 revenue, expected $250m in annual cost synergies and low-mid teens EPS accretion by year two.
1. Deal Terms
Sysco agreed to purchase Jetro Restaurant Depot for $29.1bn, comprising $21.6bn in cash and 91.5 million Sysco shares. The deal will be financed with $21bn of new debt and $1bn from cash or equity-linked securities, with issuance equal to 19.1% of Sysco’s outstanding stock.
2. Strategic Rationale
The acquisition provides Sysco entry into the cash-and-carry channel through Jetro’s 166 warehouse-style stores across 35 states. Jetro serves over 725,000 independent restaurants and foodservice operators, expanding Sysco’s multichannel distribution network.
3. Financial Impact and Synergies
The combined company generated nearly $100bn in 2025 revenue and expects the deal to be mid-to-high single-digit EPS accretive in year one and low-to-mid teens accretive in year two. Management projects $250m in annualized cost synergies within three years, driven by procurement savings and supply chain optimization.
4. Governance and Integration
Jetro Restaurant Depot will operate as a separate business segment under its current leadership team, reporting to Sysco’s CEO. Two Jetro directors will join Sysco’s board, and Jetro’s headquarters in Whitestone, New York, will remain in place.