Sysco to buy Jetro Restaurant Depot for $29.1 billion

Sysco said it will acquire Jetro Restaurant Depot as the company seeks to expand its reach into the cash-and-carry wholesale channel, a segment the companies described as “high-margin, growing and resilient."

Under the agreement, Jetro Restaurant Depot shareholders will receive $21.6 billion in cash proceeds and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 on March 27, the companies said the transaction implies an enterprise value of about $29.1 billion, or about 14.6 times Jetro Restaurant Depot’s operating income.

Jetro Restaurant Depot operates 166 large-format warehouse stores across 35 states and serves more than 725,000 independent foodservice and restaurant operators, according to the announcement. The company reported roughly $16 billion in revenue, about $2.1 billion in EBITDA, and about $1.9 billion in free cash flow for calendar year 2025.

Sysco said Jetro Restaurant Depot’s customer base is complementary to Sysco’s delivery-focused business, and that the combined company will offer more ways to serve smaller, independent foodservice customers, including operators in the convenience services channel, who rely on in-store, on-demand purchasing.

Jetro Restaurant Depot will operate as a standalone business segment within Sysco, with its leadership team expected to remain in place under Richard Kirschner, reporting to Kevin Hourican, Sysco’s chair and CEO. The company said Jetro Restaurant Depot will keep its headquarters in Whitestone, N.Y., and the companies do not anticipate workforce reductions as a result of the transaction. Sysco said it has “high confidence” in the opportunity to open more than 125 new Jetro Restaurant Depot locations over at least the next two decades, leveraging Sysco’s supply chain footprint.

The transaction has been unanimously approved by both boards and is expected to close by the third quarter of Sysco’s fiscal 2027, subject to customary closing conditions, including regulatory approvals.