Sysco, the largest food distributor in the United States, has agreed to acquire supplier Restaurant Depot for more than $29 billion. Shares of Sysco fell 6% in premarket trading on Monday. The acquisition will enable Sysco to strengthen ties with customers who rely on Restaurant Depot. This business segment operates under what the industry terms a "cash-and-carry wholesale" model, primarily serving customers' needs for quick inventory replenishment. Headquartered in Houston, Sysco supplies over 700,000 restaurants, hospitals, schools, and hotels with a wide range of goods—from butter and eggs to napkins—typically delivered on regular schedules to meet institutional purchasing requirements. Restaurant Depot offers membership services to small, family-owned restaurants and other businesses, allowing them to make emergency purchases at its warehouses when supplies ordered from distributors like Sysco run short. This segment is experiencing rapid growth and offers higher profit margins. The move is expected to make thousands of restaurants more reliant on Sysco for their day-to-day operational supplies. Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million shares of Sysco stock. Based on Sysco's closing price of $81.80 per share on March 27, 2026, the enterprise value of the transaction is approximately $29.1 billion. Founded in Brooklyn in 1976, the family-owned business, formerly known as Jetro Restaurant Depot, has grown into the largest cash-and-carry wholesaler in the United States. The boards of both companies have approved the acquisition, though the deal still requires regulatory approval.
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