Sysco to acquire Jetro Restaurant Depot in $29bn deal

Core Viewpoint - Sysco, a US-based foodservice distribution company, has agreed to acquire Jetro Restaurant Depot for $29.1 billion, marking its entry into the cash-and-carry channel [1][2]. Group 1: Acquisition Details - Jetro Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares as part of the acquisition [1]. - Sysco plans to finance the cash portion of the deal with $21 billion in new debt and hybrid debt instruments, with an additional $1 billion from existing cash or equity-linked securities [3]. - At closing, Sysco will issue shares representing approximately 19.1% of its outstanding stock to Jetro shareholders, who will own about 16% of Sysco's common equity post-acquisition [4]. Group 2: Business Operations - Jetro Restaurant Depot operates 166 large warehouse-style stores across 35 states, serving over 725,000 independent restaurants and foodservice operators [2]. - The company will continue to operate as a separate business segment within Sysco, maintaining its headquarters in Whitestone, New York, with its existing leadership team [4][5]. Group 3: Financial Impact - The merger is expected to be mid-to-high single-digit EPS accretive in the first year and low-to-mid teens accretive in the second year [6]. - The combined business is projected to generate nearly $100 billion in net revenue by 2025, with expected annualized net cost synergies of $250 million within three years, primarily from procurement savings and supply chain optimization [5][6].