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The
acquisition would create a closer link between Sysco and its
customers that right now turn to Restaurant Depot for supplies
needed quickly in an industry segment known as “cash-and-carry
wholesale.”
Sysco, based in Houston, serves more than 700,000 restaurants,
hospitals, schools and hotels, supplying them with everything
from butter and eggs to napkins. Those goods are typically
acquired ahead of time based on how much traffic that
restaurants typically see.
Restaurant Depot offers memberships to mom-and-pop restaurants
and other businesses, giving them access to warehouses stocked
with supplies for when they run short of what they've purchased
from suppliers like Sysco.
It is a fast growing and high-margin segment that will likely
mean thousands of restaurants will rely increasingly on Sysco
for day-to-day needs.
Restaurant Depot shareholders will receive $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, the deal has an enterprise
value of about $29.1 billion.
Restaurant Depot was founded in Brooklyn in 1976. The family run
business then known as Jetro Restaurant Depot, has become the
nation's largest cash-and-carry wholesaler.
The boards of both companies have approved the acquisition, but
it would still need regulatory approval.
Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial
decline some industry analysts expected given the cost of the
deal.
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