Why It Matters to Distributors: Large distributors are expanding into adjacent channels, accelerating the shift toward multi-model strategies that combine delivery, ecommerce, and warehouse-based purchasing.
Sysco Corp. is acquiring Jetro Restaurant Depot for about $29.1 billion, in one of the largest deals in the history of wholesale distribution and a major expansion into the cash-and-carry segment.
The transaction includes approximately $21.6 billion in cash and 91.5 million Sysco shares, valuing Restaurant Depot at about 14.6 times operating income.
The acquisition combines Sysco’s contract-based delivery network with Restaurant Depot’s warehouse model, which allows customers to purchase products on demand. Sysco said the deal will create a multi-channel distribution platform serving both large accounts and smaller, independent operators.
Restaurant Depot operates 166 warehouse locations across 35 states and serves more than 725,000 independent restaurants and foodservice customers. The company generated $16 billion in revenue in 2025, along with about $2.1 billion in EBITDA and $1.9 billion in free cash flow, according to the announcement.
Sysco CEO Kevin Hourican said the transaction will expand product access and provide more purchasing flexibility for customers that prefer to buy inventory as needed rather than through scheduled delivery.
Sysco, the largest foodservice distributor in North America, has historically focused on contract distribution, supplying restaurants, healthcare providers, and institutional customers through scheduled delivery routes.
Restaurant Depot operates a different model, serving primarily independent operators through warehouse locations where customers can purchase goods in bulk without delivery commitments.
The combination reflects a broader shift among distributors toward offering multiple fulfillment options as customer buying patterns evolve.
Restaurant Depot will operate as a standalone business segment within Sysco. Its leadership team will remain in place, and the company will continue to be headquartered in Whitestone, New York.
Sysco said the acquisition is expected to be accretive to margins, earnings per share and free cash flow. The company also plans to expand the Restaurant Depot footprint, with more than 125 additional locations over time.
The company reaffirmed its fiscal 2026 financial guidance.
The transaction is expected to close in fiscal 2027, subject to regulatory approvals and customary conditions.
The deal comes as wholesale distributors continue to expand beyond traditional delivery models to capture demand across multiple channels.
Distributors are increasingly investing in:
- Cash-and-carry formats
- Ecommerce platforms
- Hybrid fulfillment strategies
The acquisition also highlights the importance of serving smaller and mid-sized customers, which often require more flexible purchasing options and faster inventory turns than larger contract accounts.
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