Piper Sandler Downplays Sysco Corporation (SYY)’s $29.1B Deal for Restaurant Depot

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Under the presumption of the agreement, Restaurant Depot shareholders are to person $21.6 cardinal successful currency proceeds and $91.5 cardinal successful Sysco shares. Sysco plans to concern the transaction with $21 cardinal successful caller and hybrid indebtedness and $1 cardinal successful currency and equity.

The acquisition is poised to grow Sysco’s footprint into the $60- $70 cardinal Cash and Carry Channel conception of the $380 cardinal US foodservice market. Sysco expects the transaction to beryllium mid- to high-single-digit EPS accretive successful twelvemonth 1 and debased to mid-teens accretive successful twelvemonth two. In addition, Restaurant Depot is to run arsenic a abstracted concern conception wrong Sysco erstwhile the acquisition closes.

Sysco Corporation (NYSE:SYY) is the planetary person successful the sale, marketing, and organisation of nutrient products and non-food supplies to restaurants, healthcare/educational facilities, and hospitality businesses. It operates implicit 300 organisation facilities worldwide, providing broad proviso concatenation solutions.

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