Sysco shares fall premarket as company announces $29B acquisition of Jetro Restaurant Depot

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',a=n._store.getNotifications(),r=n._generatePanelMarkup(o,a),i.innerHTML=r;break;case"error_panel":r=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=r}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(P))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),j=function(){function e(t,n,o){E(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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Restaurant Depot in a transaction valued at approximately $29.1 billion.Under the terms of the deal, Jetro shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s March 27 closing price of $81.80, the transaction implies an enterprise value multiple of about 14.6 times Jetro’s operating income.The acquisition marks a significant strategic shift for Sysco, enabling it to enter the cash-and-carry wholesale segment, a $60 billion to $70 billion market that primarily serves smaller, independent restaurants and food businesses.Jetro Restaurant Depot operates 166 warehouse locations across 35 US states and serves more than 725,000 customers. The company generated approximately $16 billion in revenue, $2.1 billion in EBITDA, and $1.9 billion in free cash flow in 2025.“We’re thrilled to combine two industry leaders,” Sysco CEO Kevin Hourican said, noting the deal would expand access to affordable food products while improving convenience and choice for customers. He added that Sysco sees a “long runway” for growth, including plans to open more than 125 new Jetro locations over time.Jetro executive chairman Stanley Fleishman said the transaction reflects the strength of the company’s business model and positions it for further expansion. He is expected to join Sysco’s board following the deal’s completion.On a pro forma basis, the combined company would have generated nearly $100 billion in revenue, $6.4 billion in adjusted EBITDA, and $5.5 billion in free cash flow in 2025.Sysco expects the acquisition to be accretive to earnings per share in the first year after closing and to deliver approximately $250 million in annual cost synergies within three years.To fund the transaction, Sysco plans to raise about $21 billion in new debt and hybrid financing, alongside $1 billion from cash or equity-linked sources.The company said it will pause share repurchases to prioritize deleveraging, targeting a reduction in net leverage of at least one turn within 24 months.Despite the scale of the deal, Sysco reaffirmed its fiscal 2026 guidance, including expected sales growth of 3% to 5% and adjusted earnings per share at the high end of its $4.50 to $4.60 range.The transaction, which has been unanimously approved by both companies’ boards, is expected to close by the third quarter of Sysco’s fiscal 2027.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersNKE NIKE, Inc. 52.82 +1.58 (+3.08%)BTC-USD Bitcoin USD 67,994.28 +1,183.07 (+1.77%)COIN Coinbase Global, Inc. 174.61 +13.82 (+8.60%)BA The Boeing Company 199.03 +9.82 (+5.19%)TSLA Tesla, Inc. 371.75 +16.47 (+4.64%)PortfolioSign in to access your portfolioSign inTop gainersAPLS Apellis Pharmaceuticals, Inc. 40.23 +23.14 (+135.40%)CNTA Centessa Pharmaceuticals plc 39.72 +12.14 (+44.02%)FLY Firefly Aerospace Inc. 28.47 +4.85 (+20.53%)ALKS Alkermes plc 35.36 +5.21 (+17.28%)PRAX Praxis Precision Medicines, Inc. 322.19 +45.75 (+16.55%)Top losersBTU Peabody Energy Corporation 32.95 -2.73 (-7.65%)SOC Sable Offshore Corp. 16.52 -1.32 (-7.40%)VG Venture Global, Inc. 15.76 -1.13 (-6.69%)CEG Constellation Energy Corporation 279.25 -19.34 (-6.48%)MKC McCormick & Company, Incorporated 50.44 -3.28 (-6.11%)Most activeNVDA NVIDIA Corporation 174.40 +9.23 (+5.59%)SNAP Snap Inc. 4.6000 +0.5800 (+14.43%)APLS Apellis Pharmaceuticals, Inc. 40.23 +23.14 (+135.40%)INTC Intel Corporation 44.13 +2.94 (+7.14%)NU Nu Holdings Ltd. 14.37 +0.86 (+6.37%)Top economic eventsEarnings eventsMy earnings eventsEarnings events