Sysco, the nation’s largest supplier of food and other goods to restaurants and catering businesses, has struck a deal to acquire family-owned Jetro Restaurant Depot for $29.1 billion, including debt.
The transaction, announced March 30, will be paid in a mix of cash and stock. Under the terms of the agreement, Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million shares of Sysco stock, leaving them with about 16 percent of Sysco’s outstanding common shares after the deal closes.
The companies said the purchase price represents 14.6 times Restaurant Depot’s operating income.
Restaurant Depot, which will continue to be based in Whitestone, New York, operates as a members-only warehouse chain for the food industry, offering a model similar to Costco’s for independent restaurants. Its warehouses stock bulk quantities of meat, fresh produce, dry goods, and kitchen supplies, allowing customers to pick up inventory the same day at wholesale prices….