NEW YORK CITY, New York: Sysco is moving deeper into the fast-growing "cash-and-carry" wholesale segment with a US$29 billion deal to acquire Restaurant Depot, strengthening its ties with restaurant customers and expanding into higher-margin sales.

Sysco, the nation's largest food distributor, said it will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers who currently turn to Restaurant Depot for quick supplies in an industry segment known as "cash-and-carry wholesale."

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically purchased in advance based on expected demand.

Restaurant Depot offers memberships to independent restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of inventory sourced from distributors like Sysco.

The segment has been growing quickly and carries higher margins, meaning more restaurants could increasingly rely on Sysco for day-to-day needs following the deal.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco's closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business, originally known as Jetro Restaurant Depot, has grown into the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, though it still requires regulatory approval.

Shares of Sysco Corp. fell 13 percent on March 30 to $71.26, a decline some analysts had anticipated given the size and cost of the deal.