Sysco Calls $29B Restaurant Depot Deal “Transformational,” Eyes EPS Accretion and $250M Synergies

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Mon, March 30, 2026 astatine 11:10 AM CDT 8 min read

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Sysco agreed to get Restaurant Depot for $29.1 billion (cash positive 91.5 cardinal Sysco shares), calling the woody “transformational” arsenic it adds a nationwide cash-and-carry transmission with 166 stores, ~725,000 customers and an estimated $60–70 cardinal addressable marketplace that complements Sysco’s transportation business.
Management expects the transaction to beryllium accretive to EPS (mid- to high-single-digit successful twelvemonth one, low- to mid-teens successful twelvemonth two), boost pro forma gross ~20%, adjusted EBITDA ~45% and escaped currency travel ~55%, and to make astir $250 million of annualized outgo synergies wrong 3 years (no gross synergies modeled).
Sysco volition money the currency information with currency connected manus and caller debt, pushing leverage to astir 4.5x post-close; the institution volition intermission buybacks, prioritize astatine slightest a 1x deleveraging wrong 24 months portion maintaining its dividend, and Restaurant Depot shareholders would ain astir 16% of Sysco with 2 directors joining the board.
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Sysco (NYSE:SYY) said it has entered into a definitive statement to get Restaurant Depot, a wholesale cash-and-carry foodservice supplier focused connected tiny restaurants and section businesses. On a league telephone announcing the deal, Sysco Chair and CEO Kevin Hourican described the transaction arsenic “transformational,” arguing the operation volition make a nationwide omni-channel level that serves antithetic lawsuit needs crossed transportation and in-store purchasing.

Hourican said Restaurant Depot serves a antithetic lawsuit than Sysco’s halfway broadline transportation business, emphasizing “minimal overlap” betwixt the 2 companies’ lawsuit bases today. He contrasted Sysco’s “white mitt consultative service” and transportation exemplary with Restaurant Depot’s self-serve approach, wherever customers prime up products themselves successful speech for little prices.

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Restaurant Depot’s worth proposition, Hourican said, is built astir “savings, selection, and work 7 days a week.” Sysco highlighted that Restaurant Depot customers typically prevention 15% to 20% versus delivered pricing by handling picking, transportation, and unloading themselves.

Sysco besides framed cash-and-carry arsenic a sizable, resilient marketplace segment. Hourican said the U.S. cash-and-carry transmission represents an estimated $60 cardinal to $70 cardinal full addressable market, abstracted from the broadline transportation channel, which helium characterized arsenic “well implicit $300 billion.” He added that the value-oriented format tends to execute good successful economical downturns, erstwhile customers question little prices.

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