- M&A
- March 31, 2026
- 3 minutes read
Food Giant Sysco To Buy Restaurant Depot For $29B
Sysco (NYSE: SYY), an American food products distribution giant, has struck a deal to acquire Jetro Restaurant Depot, a privately-held…
Sysco (NYSE: SYY), an American food products distribution giant, has struck a deal to acquire Jetro Restaurant Depot, a privately-held restaurant products supplier. Sysco will pay $21.6bn in cash and 91.5 million shares worth roughly $7.5bn at the time of announcement, totaling $29.1bn.
- Sysco supplies food to restaurants, schools, stadiums, and hospitals across the U.S. It reported a $1.8bn net income on $81bn in revenue in 2025. The Houston-based company has a market value of over $30bn.
- Jetro Restaurant Depot sells crucial supplies to restaurants across the U.S. It operates 166 big-box warehouse stores across 35 states, from which hundreds of thousands of restaurants source key supplies. The closely-held company generated $16bn in revenue and $2.1bn in earnings before interest, taxes, depreciation, and amortization (EBITDA) in fiscal 2025, according to an official statement.
Jetro Restaurant Depot was founded by Nathan “Natie” Kirsh, a South African-born billionaire. In 1976, he founded Jetro Cash & Carry, a wholesale grocer based in New York. Jetro Cash & Carry acquired Restaurant Depot in 1994, and the merged entity became Jetro Restaurant Depot. Under Kirsh’s leadership, the company has morphed into a leading supplier to restaurants and foodservice operators.
Kirsh reportedly holds a 75% stake in Jetro Restaurant Depot. That stake implies a windfall of over $20bn from Sysco’s acquisition.
- By acquiring Jetro Restaurant Depot, Sysco will gain a foothold in the restaurant supplies market, which has higher margins than its direct food distribution business. Jetro has higher EBITDA and free cash flow margins than Sysco.
- However, Sysco is taking on some risk to acquire Jetro Restaurant Depot. It plans to fund the deal with $1bn of cash on hand and $21bn of debt. The company will pause its share buyback program to reduce its debt load post-acquisition.
Sysco’s investors didn’t seem happy with the new debt load and the imminent pause of its share buyback program. The company’s share price has fallen 16% since it announced the acquisition.
Post-acquisition, Jetro Restaurant Depot will operate as an independent business unit within Sysco, with its leadership team reporting to Sysco’s chief executive, Kevin Hourican. Barring regulatory hurdles, Sysco expects the acquisition to close by March 2027.
