587.1K
CRSysco said on Monday it would buy catering supplier Jetro Restaurant Depot in a $29 billion deal, including debt, expanding the top U.S. food distributor’s reach among price-conscious independent restaurants.
The company said it would finance the acquisition with $21 billion in new and hybrid debt, along with $1 billion in cash and equity on hand. Shares of Sysco fell more than 13% in midday trading, putting the stock on pace for its worst day since March 2020.
The acquisition would be the latest major deal across consumer‑facing industries, following recent merger talks involving companies such as Unilever
, Estee Lauder
and Pernod Ricard
, as firms look for scale to navigate weaker demand and persistently higher costs.
Cash-and-carry heft
Family‑owned Jetro Restaurant Depot operates a wholesale cash‑and‑carry model, under which customers pay upfront for goods such as food, beverages and takeaway containers, complementing Sysco’s delivery network serving restaurants, hospitals and hotels.
The deal would help Sysco enter the higher-margin “cash-and-carry” business, where Restaurant Depot has about 166 warehouse locations across 35 U.S. states.
“Sysco and Jetro Restaurant Depot will enhance value for small independent restaurants and the consumers they serve by expanding access to more affordable, fresh food products and delivering more choice and convenience,” Sysco CEO Kevin Hourican said in a statement, highlighting how the combination would help lower prices for more customers.
#Sysco #restaurantdepot #cre #realestate #warehouse
@cremarketplace
