The acquisition is anticipated to be immediately accretive to Sysco's margins, earnings per share (EPS), and free cash flow, with expected synergies of approximately $250 million annually within the first three years post-closing. Sysco's CEO, Kevin Hourican, expressed enthusiasm about the merger, stating that it will create a preeminent multi-channel foodservice distribution platform that enhances value for small independent restaurants and consumers by expanding access to affordable food products.
Jetro Restaurant Depot operates 166 warehouse locations across 35 states, serving over 725,000 independent restaurants and foodservice operators. The company generated approximately $16 billion in revenue and $2.1 billion in EBITDA for the calendar year 2025, maintaining a strong growth trajectory with a 30-year track record of EBITDA growth. The combined entity is expected to leverage Sysco's extensive supply chain capabilities to improve purchasing efficiencies and lower prices for customers.
The transaction has been unanimously approved by the boards of directors of both Sysco and Jetro Restaurant Depot and is expected to close by the third quarter of Sysco's fiscal 2027, subject to customary closing conditions and regulatory approvals. Sysco plans to fund the cash portion of the acquisition through a combination of new debt and cash on hand, while also pausing its share repurchase program to prioritize de-leveraging following the acquisition.
Sysco has reaffirmed its full-year 2026 guidance, projecting sales growth of 3% to 5% and adjusted EPS at the high end of $4.50 to $4.60. The company is also set to host an investor conference call to discuss the transaction further, highlighting its commitment to maintaining strong financial flexibility and shareholder value.
