Sysco expands into high-margin restaurant segment with $29 billion deal
AP News • • business
Key Points:
- Sysco, the largest food distributor in the U.S., announced plans to acquire Restaurant Depot in a deal valued at approximately $29.1 billion, combining cash and stock.
- The acquisition aims to strengthen Sysco’s presence in the fast-growing "cash-and-carry wholesale" segment, where customers purchase supplies on demand through memberships at Restaurant Depot warehouses.
- Restaurant Depot, founded in 1976 and based in Brooklyn, is the nation’s largest cash-and-carry wholesaler serving primarily mom-and-pop restaurants and small businesses.
- The deal, approved by both companies' boards, still requires regulatory approval and is expected to increase Sysco’s reliance among thousands of restaurants for day-to-day supply needs.
- Following the announcement, Sysco’s shares dropped 13% amid analyst concerns over the high cost of the acquisition.
