"Sysco will pay Jetro shareholders $21.6 billion in cash plus 91.5 million SYY shares, based on the March 27 close of $81.80. That values the target at 14.6 times 2025 operating income, or 13.0 times after synergies."
"After the deal closes, the combined company will hit nearly $100 billion in net revenue - 20% above Sysco's fiscal 2025 figure of more than $81 billion. Adjusted EBITDA rises 45% to $6.4 billion, and free cash flow climbs 55% to $5.5 billion."
"Sysco expects $250 million in annualized net cost synergies within three years, equal to 12.5% of Jetro's operating income, mainly from procurement and inbound supply chain savings."
Sysco's $29.1 billion acquisition of Jetro Restaurant Depot is designed for long-term gains, despite a 13% drop in Sysco's stock. The deal involves $21.6 billion in cash and shares, valuing Jetro at 14.6 times 2025 operating income. Post-acquisition, the combined revenue will approach $100 billion, with significant increases in adjusted EBITDA and free cash flow. Management anticipates substantial cost synergies and EPS growth, while Jetro will operate as a standalone segment with its leadership intact.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]