Sysco strikes $29B deal to buy Jetro Restaurant Depot, expanding into cash-and-carry
Sysco will acquire Jetro Restaurant Depot in a roughly $29.1 billion enterprise transaction funded with about $21 billion of new debt plus equity and approximately $1 billion in cash/equity; Jetro shareholders will receive cash, Sysco stock representing about 19% of the company, and Jetro will operate as a standalone segment. Jetro runs 166 Cash & Carry warehouses in 35 states with 2025 revenue near $16B, EBITDA around $2.1B, and ~$1.9B in free cash flow. The Cash & Carry channel is a $60-70B market, and the deal is expected to be immediately accretive to Sysco’s adjusted EPS and low-to-mid-teens accretive in year two, with ~125+ new warehouses planned and approx. $250M in annual cost synergies within three years. The transaction will de-leverage Sysco and pause buybacks; closing targeted for Sysco’s fiscal 2027 Q3, with 2026 guidance reaffirmed (sales growth 3-5%, adjusted EPS $4.50-$4.60).