Sysco and Jetro Restaurant Depot Unite to Redefine Foodservice Distribution

The deal marks a bold step into a resilient, high-margin channel, unlocking new growth opportunities while strengthening support for independent foodservice businesses nationwide.

STRATEGIC EXPANSION

Sysco has announced a landmark agreement to acquire Jetro Restaurant Depot in a deal valued at approximately USD$29.1 billion, marking a significant strategic expansion into the fast-growing cash and carry segment.

The transaction brings together two complementary leaders in the food-away-from-home industry, creating what Sysco describes as a preeminent multi-channel foodservice distribution platform across the US.

ENTERING A HIGH-GROWTH CHANNEL

The acquisition represents Sysco’s entry into the USD$60 to 70 billion cash and carry market – a resilient and expanding channel that primarily serves independent restaurants and smaller foodservice operators.

Unlike Sysco’s traditional delivery-focused model, Jetro Restaurant Depot operates a self-service, warehouse-style approach, offering customers immediate access to affordable products.

With 166 locations across 35 US states and a customer base exceeding 725,000 businesses, Jetro Restaurant Depot has built a strong reputation as a one-stop shop for independent operators seeking value and convenience.

In 2025, the company generated approximately USD$16 billion in revenue, alongside USD$2.1 billion in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and USD$1.9 billion in free cash flow, supported by a 30-year track record of consistent EBITDA growth.

STRATEGIC COMPLEMENTARITY

The combination aligns two highly complementary customer bases. Sysco traditionally serves higher-volume clients requiring delivery and premium service, while Jetro Restaurant Depot caters to smaller, independent businesses prioritizing price and flexibility.

Jetro Restaurant Depot will continue to operate as a standalone business segment within Sysco, retaining its leadership team under CEO Richard Kirschner, and maintaining its headquarters in Whitestone, New York.

STRONG FINANCIAL UPSIDE

The transaction is expected to deliver immediate financial benefits, including being accretive to margins, earnings per share (EPS), and free cash flow.

Sysco anticipates mid- to high single-digit EPS accretion in the first year following completion, rising to low- to mid-teens in the second year.

On a combined basis, the companies generated nearly USD$100 billion in revenue in 2025, alongside USD$6.4 billion in adjusted EBITDA, and USD$5.5 billion in free cash flow.

The deal is expected to increase Sysco’s revenue by approximately 20 percent, EBITDA by 45 percent, and free cash flow by 55 percent.

Additionally, the integration is projected to deliver around USD$250 million in annualized cost synergies within three years, primarily through procurement efficiencies and supply chain optimization.

LONG-TERM GROWTH AND JOB CREATION

A key pillar of the acquisition is long-term expansion. Leveraging Sysco’s extensive supply chain infrastructure, the combined company plans to open more than 125 new Jetro Restaurant Depot locations over the next two decades.

This expansion is expected to bring affordable food service options to new markets while creating thousands of jobs, reinforcing the companies’ shared commitment to supporting local communities and independent businesses.

ENHANCED CUSTOMER VALUE

The combined platform is set to deliver tangible benefits to customers across three key areas:

• More value – increased purchasing scale and supply chain efficiencies will enable lower prices.
• Broader choice – an expanded product assortment across multiple price tiers and categories.
• Greater convenience – customers will benefit from both delivery services and same-day, in-store purchasing options.

By integrating these capabilities, Sysco aims to create a more flexible and responsive offering tailored to evolving customer needs.

TRANSACTION STRUCTURE AND OUTLOOK

Under the terms of the agreement, Jetro Restaurant Depot shareholders will receive USD$21.6 billion in cash and 91.5 million Sysco shares, equating to approximately 16 percent ownership of the combined company.

Sysco plans to finance the deal through a combination of new debt and available capital, while maintaining its investment-grade credit rating and dividend commitments.

The company has temporarily paused its share repurchase program to prioritize deleveraging, with a target to reduce net leverage by at least one turn within 24 months post-close.

The transaction has been unanimously approved by both companies’ boards and is expected to close by the third quarter of Sysco’s fiscal 2027, subject to regulatory approvals.

CONTINUED MOMENTUM

Alongside the acquisition announcement, Sysco reaffirmed its fiscal 2026 guidance, projecting sales growth of three to five percent and adjusted EPS at the high end of USD$4.50 to USD$4.60.

The company also expects a strong third-quarter performance, including over 3 percent growth in USFS local case volumes.

As Sysco continues to build momentum, the acquisition of Jetro Restaurant Depot signals a decisive step towards diversifying its business model, strengthening its market position, and unlocking long-term value for customers, communities, and shareholders alike.