News
Food Service · Jetro · M&A · Sysco
Sysco Corporation is acquiring Jetro Restaurant Depot, founded by Natie Kirsh, for $29.1 billion, including debt, creating one of the largest food-service groups in the US; Jetro shareholders receive $21.6 billion in cash and 91.5 million Sysco shares.
Sysco, with a $39 billion market value, supplies food to restaurants, hospitals, and schools. Jetro, operating 166 warehouse stores across 35 states, serves 725,000 smaller restaurant owners, generating $16 billion in revenue and $2.1 billion in EBITDA last year.
Sysco shares fell 14% following the announcement. Sysco gains access to the higher-margin cash-and-carry channel and funds the deal with $1 billion cash and $21 billion new debt, pausing its share buyback program for de-leveraging.
Jetro shareholders will own 16% of Sysco stock, and Jetro operates as a standalone segment. Vital Knowledge Media's Adam Crisafulli stated Sysco shareholders "don't love the deal" due to the elevated multiple and increased leverage, but acknowledged new growth opportunities.
Sysco Acquires Jetro for $29.1B; Shares Drop(current)
