News
Acquisition · Cash-And-Carry · Food Distribution · Sysco
Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal valued at over $29 billion, significantly expanding its presence in the fast-growing, high-margin "cash-and-carry wholesale" segment and creating a closer link with its restaurant customers.
Sysco serves over 700,000 customers including restaurants, hospitals, schools, and hotels with pre-ordered supplies. Restaurant Depot, founded in Brooklyn in 1976 as Jetro Restaurant Depot, offers memberships to mom-and-pop restaurants for immediate, short-notice supply needs from its warehouses, a segment known for its high margins.
The acquisition price includes $21.6 billion in cash and 91.5 million Sysco shares, based on Sysco's closing share price of $81.80 as of March 27, 2026, valuing the deal at approximately $29.1 billion. Both company boards have approved the acquisition, which still requires regulatory approval.
Following the announcement, Sysco Corp. shares tumbled 13% to $71.26 on Monday, an initial decline industry analysts expected given the substantial cost of the deal.
Sysco Acquires Restaurant Depot for $29 Billion, Shares Tumble(current)
