Sysco Jetro Acquisition Reshapes Financing
Sysco Jetro acquisition announced a $29.1 billion cash-and-stock deal that reshapes Sysco's financing and could pressure shares while delaying buybacks.
KEY TAKEAWAYS
- Sysco agreed to acquire Jetro for a $29.1 billion enterprise value.
- Consideration includes $21.6 billion cash and 91.5 million Sysco shares, about 19.1% pre-close.
- Planned funding centers on about $21.0 billion of new debt and roughly $1.0 billion of cash or equity.
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Sysco Corporation (NYSE:SYY) announced on March 30, 2026, a definitive cash-and-stock agreement to acquire Jetro Restaurant Depot. The company said the deal will be immediately accretive to margins and earnings per share (EPS) while reshaping its financing mix and near-term shareholder structure.
Deal Terms and Strategic Outlook
Sysco signed a definitive agreement to acquire Jetro Restaurant Depot for an enterprise value of $29.1 billion, based on Sysco’s $81.80 share price as of March 27, 2026. The consideration includes $21.6 billion in cash and the issuance of 91.5 million Sysco shares, representing about 19.1% of outstanding stock before closing and roughly 16% afterward. The purchase values Jetro at 14.6 times operating income, or about 13.0 times including expected synergies.
The transaction will be funded with approximately $21.0 billion of new debt and hybrid instruments, plus roughly $1.0 billion of cash, equity, or equity-linked securities. Both companies’ boards approved the deal unanimously. The transaction remains subject to customary closing conditions, including regulatory approvals, and is expected to close in Sysco’s fiscal third quarter of 2027, around September.
Jetro operates 166 large-format warehouse stores across 35 states, serving about 725,000 independent restaurants and foodservice operators. It reported $16.0 billion in revenue and $2.1 billion of EBITDA in 2025. On a pro forma 2025 basis, the combined company would generate approximately $100 billion in revenue, $6.4 billion of adjusted EBITDA, and $5.5 billion of free cash flow.
Sysco expects the deal to be immediately accretive to margins, adjusted EPS, and free cash flow. It projects $250 million of annualized net cost synergies within three years, equivalent to about 12.5% of Jetro’s operating income, driven by procurement and supply-chain efficiencies.
The company reaffirmed its fiscal 2026 guidance for sales growth of 3.0% to 5.0% and adjusted EPS at the upper end of a $4.50 to $4.60 range. It also reconfirmed a third-quarter adjusted EPS target near $0.94 and U.S. Foodservice local case-volume growth above 3.0%. Sysco plans to maintain its dividend, target an investment-grade credit rating, and resume share repurchases after reducing leverage, with a roughly two-year horizon to restart buybacks.
After closing, Jetro will operate as a standalone segment from its headquarters in Whitestone, New York, with Richard Kirschner reporting to Sysco Chief Executive Kevin Hourican. Jetro directors Sir Bradley Fried and Stanley Fleishman will join Sysco’s board. The companies do not anticipate workforce reductions. Sysco plans to add more than 125 new Jetro warehouses over the next two decades, leveraging its distribution network to expand the chain’s footprint.
“We’re thrilled to combine two industry leaders to create a preeminent multi-channel foodservice distribution platform,” said Kevin Hourican, Sysco chair and CEO.
