Sysco plans $29.1 billion acquisition of Restaurant Depot

Sysco announced plans to acquire Jetro Restaurant Depot for $29.1 billion. The deal includes $21.6 billion in cash and 91.5 million Sysco shares. The transaction would combine Sysco's delivery services with Restaurant Depot's warehouse model. Restaurant Depot operates 166 locations and serves more than 725,000 independent restaurants.

Industry concerns Independent restaurant operators said the merger would reduce competition. They worry about higher prices and fewer choices for supplies. Robert Mahon of Mahon Hospitality Group said independent operators rely on Restaurant Depot. He expressed concern about long-term pricing effects.

Erika Polmar of the Independent Restaurant Coalition called the deal an existential threat. She urged the Federal Trade Commission to block the acquisition.

Company response Sysco stated that Restaurant Depot would operate as a standalone business segment after the deal closes. The company said it would not raise prices at Restaurant Depot and plans to open more than 125 new warehouses. A Sysco spokesperson said the merger would give smaller operators access to a broader product assortment.

The company also said it would expand the reach of local farmers and producers. Sysco expects to complete the transaction by the end of its fiscal year in 2027. The company is funding the cash portion with $21 billion in new debt and hybrid debt.