Sysco Acquires Jetro Restaurant Depot, Founded by South African Billionaire, Natie Kirsh

Transaction Tuesdays With Talita

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On 30 March 2026, the global foodservice landscape shifted with the announcement that the NYSE-listed Sysco (SYY) will be acquiring Jetro Restaurant Depot LLC, for an enterprise value of approximately $29.1 billion. This valuation represents a 14x multiple of Jetro’s operating income. While both entities are based in the United States, the transaction is significant from a South African M&A perspective, because Jetro was founded and built by South African billionaire Nathan ‘Natie’ Kirsh. The deal represents the international expansion and eventual institutional acquisition of a cash-and-carry business model originally established in South Africa.

South African Roots

Nathan Kirsh, 94, was raised in Potchefstroom and began his commercial career in his 20s, using a £1,200 inheritance from his father to launch a corn milling and malt business. Under apartheid, formal retail was concentrated in white urban areas, while white-owned companies were restricted from operating in black townships. Kirsh identified a market gap created by these regulatory restrictions. He subsequently expanded into food distribution during the 1960s and 1970s, building a wholesale network that supplied independent traders in underserved areas. Upon exiting South Africa, Kirsh retained control of a small U.S.-based business called Jetro. Recognising that American independent restaurateurs faced similar supply chain hurdles as the traders he served in South Africa, he applied his proven model, acquired Restaurant Depot and turned it into the multi-billion-dollar empire that it is today.

Jetro Restaurant Depot

Founded by Kirsh in 1976, Jetro Restaurant Depot is now the biggest wholesale provider for independent foodservice operators in the United States of America, serving over 725,000 independent restaurants and grocery retailers across 166 large-format warehouse stores in 35 states. As a purpose-built one-stop shop designed for chefs and small business owners requiring flexibility and immediate stock, the company offers fresh and low-priced products, seven days a week. This model has proven exceptionally robust, with Jetro generating a staggering $16 billion in revenue, with a $2.1 billion EBITDA during the 2025 calendar year.

Sysco

Sysco is a global distributor of food products to the "meal-away-from-home" market, including the healthcare, education and hospitality sectors. The company operates 337 distribution centres in 10 countries and employs approximately 75,000 people. For the 2025 fiscal year, Sysco reported sales exceeding $81 billion. Its primary operating model focuses on high-volume delivery and bespoke supply chain support, which contrasts with Jetro’s self-service cash-and-carry format.

The Transaction

This acquisition allows Sysco to enter the higher-margin cash-and-carry segment and broaden its customer base extensively. The combined entity’s 2025 annual net revenue is nearly $100 billion, with the transaction expected to increase Sysco’s revenue by 20% and EBITDA by 45%. Sysco intends to open more than 125 new Jetro locations over the next two decades. The transaction will be funded through $21 billion in new and hybrid debt and $1 billion in cash and equity. Consequently, Jetro shareholders are expected to hold a 16% stake in Sysco common stock. Jetro will operate as a standalone segment under Sysco, with leadership continuity under Richard Kirschner and two directors - Sir Bradley Fried and Stanley Fleishman - joining the Sysco Board. The deal is expected to close by the third quarter of Sysco’s fiscal year in 2027, subject to regulatory approval.

Conclusion

For South Africans, this acquisition is a testament to the cash and carry model pioneered in South Africa. For Natie Kirsh, now 94, this transaction represents the ultimate validation of a business philosophy that prioritises the independent shopkeeper and the local restaurateur. As Sysco pauses its share buybacks to integrate this acquisition, the global market will be watching to see how this South African-born legacy reshapes the future of American foodservice.