Jetro Restaurant Depot to operate as a standalone business segment within Sysco

Upon closing of the transaction, Jetro Restaurant Depot will operate as a standalone business segment within Sysco (SYY), maintaining its strong operating model. Jetro Restaurant Depot’s leadership team is expected to remain in place under Richard Kirschner, who will report to Hourican. Jetro Restaurant Depot will maintain its headquarters in Whitestone, New York, ensuring continuity for employees, customers, and partners. In addition, two of Jetro Restaurant Depot’s current directors, Sir Bradley Fried and Stanley Fleishman, will join the Sysco Board of Directors as the companies move forward together. The companies do not anticipate workforce reductions as a result of the transaction. Through targeted collaboration that is minimally disruptive to the core Jetro Restaurant Depot and Sysco businesses, the combination is expected to realize approximately $250M in annualized net cost synergies within the first three years following closing and represent approximately 12.5% of Jetro Restaurant Depot’s Operating Income. These synergies will be realized primarily via savings on product procurement and inbound supply chain optimization. Over the medium-term, the combined company sees opportunity to win additional customers in both businesses through access to an expanded assortment and improved sales and service. That longer-term value would be accretive to these defined synergies.