Sysco to Acquire Restaurant Depot in $29 Billion Deal

Sysco, the largest food distributor in the United States, announced its intent to acquire supplier Restaurant Depot in a transaction valued at over $29 billion.

The acquisition aims to strengthen the link between Sysco and its customers who utilize the "cash-and-carry wholesale" segment for immediate supply needs. Sysco, headquartered in Houston, provides goods ranging from butter to napkins to over 700,000 clients, including restaurants, hospitals, schools, and hotels, typically through pre-ordered supplies.

Strengthening the Supply Chain

Restaurant Depot offers memberships to businesses, such as "mom-and-pop" restaurants, allowing them access to warehouses for additional supplies when existing stock runs low. This caters to clients seeking on-demand provisions outside of traditional pre-ordered deliveries.

This "cash-and-carry" segment is characterized by rapid growth and high-profit margins.

Transaction Details

Under the terms of the agreement, Restaurant Depot shareholders are set to receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco's closing share price of $81.80 on March 27, 2026, the transaction has an enterprise value of approximately $29.1 billion.

Company Backgrounds and Approval

Restaurant Depot, initially known as Jetro Restaurant Depot, was established in Brooklyn in 1976. Since its inception, it has grown to become the largest cash-and-carry wholesaler nationwide.

Both companies' boards have formally approved the acquisition. The completion of the transaction remains subject to standard regulatory approval processes.

Market Reaction

Following the announcement, shares of Sysco Corp. fell 13% to $71.26. Industry analysts had anticipated an initial decline in share price, linking the anticipated drop to the substantial cost of the deal.