Sysco to Acquire Restaurant Depot for $29 Billion in Major Wholesale Expansion

Sysco Corporation has announced a definitive agreement to acquire Restaurant Depot LLC in a deal valued at $29 billion. Following the announcement, CEO Kevin Hourican appeared on CNBC's 'Squawk Box' to defend the strategic value of the merger, characterizing Jetro Restaurant Depot as a "gem of an asset." During the interview, the CEO discussed the company's positive growth outlook following the integration of these new assets into the $400 billion U.S. foodservice distribution market. Despite leadership's optimism, Sysco's stock (SYY) remains under downward pressure as investors weigh significant integration risks and the substantial debt involved. The acquisition is designed to expand Sysco's footprint in the high-margin cash-and-carry segment to boost earnings by fiscal 2027. Analysts are closely monitoring whether this public relations effort can alleviate market concerns regarding operational complexities.