Houston-based Sysco, America’s biggest food distribution company, has announced plans to purchase Restaurant Depot in a massive transaction valued at more than $29 billion.
The purchase would strengthen connections between Sysco and clients who depend on Restaurant Depot for immediate supply needs through what’s called the “cash-and-carry wholesale” business model.
Sysco currently provides food service to over 700,000 establishments including restaurants, medical facilities, educational institutions, and hotels, delivering everything from dairy products and produce to paper goods. These customers typically place regular orders for items they know they’ll consistently require.
Restaurant Depot operates on a membership basis, allowing independent restaurants and small businesses to access warehouse facilities stocked with products for emergency situations when their regular supply orders fall short.
This rapidly expanding, profitable market sector could result in thousands of dining establishments becoming more dependent on Sysco for their daily operational requirements.
Under the agreement terms, Restaurant Depot stockholders would receive $21.6 billion in cash plus 91.5 million Sysco stock shares. Using Sysco’s March 27, 2026 closing price of $81.80 per share, the total transaction value reaches approximately $29.1 billion.
Restaurant Depot began operations in Brooklyn during 1976. Originally called Jetro Restaurant Depot, this family-owned enterprise has grown into America’s top cash-and-carry wholesale operation.
While leadership teams from both corporations have given their approval to the merger, federal regulators must still sign off on the transaction.
