In a deal valued at over $29 billion, Sysco, the biggest food distributor in the country, will purchase supplier Restaurant Depot.
Through the acquisition, Sysco would establish a stronger connection with clients who depend on Restaurant Depot for prompt supplies in a market niche 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.
These products are usually purchased on a regular basis to cover items that these locations anticipate needing.
Mom-and-pop restaurants and other businesses can become members of Restaurant Depot, which gives them access to warehouses full of supplies in case they run out of what they’ve bought from suppliers like Sysco.
This is a rapidly expanding, high-margin market, which means thousands of restaurants will probably depend more and more on Sysco for daily needs.
91.5 million Sysco shares and $21.6 billion in cash will be distributed to Restaurant Depot shareholders.
The purchase has an enterprise value of roughly $29.1 billion based on Sysco’s closing share price of $81.80 on March 27, 2026.
In 1976, Restaurant Depot was established in Brooklyn. Formerly known as Jetro Restaurant Depot, the family-run company is now the biggest cash-and-carry distributor in the country.
Although the transaction has been accepted by both businesses’ boards, regulatory approval is still required.
