All articles tagged with #sysco
Sysco plans a large expansion into the higher-margin restaurant segment through a $29 billion deal, signaling a strategic shift to diversify beyond its core distribution business and pursue growth in the foodservice market.
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).
A strike by Teamsters members at a Sysco facility in Louisville, Kentucky, ended over the weekend with the signing of the first-ever contract between the members of Local 89 and the food distribution giant. The union said delivery drivers will see an immediate increase in their pay of $4.35, and shuttle drivers’ pay would be increased by $5.35 to “catch up” with the delivery drivers. Both groups would then see another increase of $3.50 per hour by the end of the contract, which the union said would last five years. The total would average a “staggering” 34.5% increase in pay over the life of the contract, the union said.
Teamsters Local Union No. 135 has gone on strike against Sysco Indianapolis due to what they call "unfair labor practices." The strike was authorized by a unanimous vote on March 12 after failed negotiations over a new contract. The union is advocating for higher wages and benefits. Sysco has implemented contingency plans to continue operations and has filed an unfair labor practice charge with the National Labor Relations Board.