Sysco Launches $1 Billion Stock Offering to Help Fund $29.1 Billion Jetro Restaurant Depot Acquisition

Sysco announced a $1 billion common stock offering on September 14, with proceeds earmarked to help finance its pending acquisition of Jetro Restaurant Depot, the leading cash-and-carry foodservice supplier in the United States. The deal is valued at $29.1 billion in total, representing approximately 14.6 times Jetro's operating income, or 13.0 times including expected synergies.

Sysco plans to fund the cash portion of the transaction with $21 billion in new debt and hybrid debt, $1 billion in cash on hand, and the equity raised through the offering. At closing, Jetro's existing shareholders will also receive approximately 19.1% of Sysco's outstanding shares, giving them roughly a 16% ownership stake in the combined company.

Shares of Sysco slid following the offering announcement, a typical market reaction to equity dilution. The company is also pausing its share repurchase program and has committed to reducing net leverage by at least 1.0 times within the first 24 months after the deal closes, with buybacks set to resume once meaningful de-leveraging progress is achieved. Jetro Restaurant Depot will operate as a standalone segment within Sysco after the transaction, with its existing leadership team remaining in place.