Investing.com -- Shares of Sysco Corporation traded over 3% lower in pre-market trading on Monday after the company confirmed that it will acquire Jetro Restaurant Depot in a $29.1 billion deal, including debt.

Under the agreement, Jetro shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. The deal values Jetro at 14.6 times its operating income based on 2025 results. Jetro operates 166 warehouse stores across 35 states, serving more than 725,000 independent restaurants and foodservice operators. The company generated approximately $16 billion in revenue and $2.1 billion in EBITDA for calendar year 2025.

Sysco will fund the cash portion through $21 billion in new debt and hybrid debt, plus $1 billion from cash on hand or equity securities. Following the transaction, Jetro shareholders will own approximately 16% of Sysco’s outstanding common stock. Following the acquisition, the companies see approximately $250 million in annual cost synergies within three years, primarily through procurement savings and supply chain optimization.

Jetro will continue operating as a standalone business segment within Sysco, with headquarters in Whitestone, New York

Sysco currently has a market cap of roughly $39 billion. The deal has been first reported on by the Wall Street Journal earlier on Monday.