Sysco Acquires Jetro Restaurant Depot for $29 Billion; Stock Drops 13%

AI Summary

Sysco announced a $29 billion acquisition of Jetro Restaurant Depot, which includes $21 billion in new and hybrid debt and $1 billion in cash. Following this announcement, Sysco's shares fell nearly 12% in morning trading, with the market capitalization at $39.2 billion. Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares, resulting in a 16% stake in the combined company. Sysco anticipates the deal will increase earnings per share by a mid- to high-single-digit percentage in the first year post-acquisition, expected by fiscal Q3 2027.