Sysco Corp is acquiring Jetro Restaurant Depot LLC, the closely held wholesaler founded by billionaire Nathan ‘Natie’ Kirsh, for $29.1 billion (R499.3 billion) including debt in a deal that will create one of the largest food-service groups in the US.
Jetro shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares, the companies said Monday.
The deal represents a multiple of more than 14 times Jetro’s operating income.
Sysco supplies food to restaurants, hospitals and schools across the US and had a market value of about $39 billion as at Friday, while Jetro functions as a sort of Costco-like business for 725 000 smaller restaurant owners and food-service operators.
Shares of Sysco fell as much as 14%.
The stock had gained 11% since the start of the year through Friday’s close.
The business
Kirsh, 94, founded Jetro in 1976 and maintained tight control while expanding the business significantly.
It operates 166
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