Sysco CEO Kevin Hourican said Tuesday that the company expects regulatory approval for its $29 billion [1] acquisition of Restaurant Depot.
The deal represents a significant expansion of Sysco's footprint in the food distribution sector. If approved, the takeover would consolidate a major portion of the supply chain serving independent restaurants and food service operators across the U.S.
Speaking during a one-on-one interview on CNBC’s ‘Mad Money’ on Aug. 11 [2], Hourican said the company's quarterly financial results and the strategic path forward. He addressed the timeline for the merger, noting that the process remains on track despite the scale of the transaction.
"I am confident the $29 billion Restaurant Depot acquisition will win regulatory approval and close in early 2027," Hourican said [1].
The conversation with host Jim Cramer also touched upon Sysco's recent food-safety initiatives and the general state of the restaurant industry. Hourican said the company's growth strategy remains robust as it integrates new assets into its existing logistics network.
While regulatory bodies typically scrutinize deals of this magnitude for potential antitrust concerns, the CEO said that the company is prepared for the review process. The acquisition is intended to streamline how Sysco reaches smaller operators who rely on the warehouse-style model provided by Restaurant Depot.
Sysco has not detailed specific concessions it might make to satisfy regulators, but Hourican said that the synergy between the two companies provides a clear value proposition for the market. The company continues to monitor quarterly performance as it prepares for the transition into 2027 [1].
“I am confident the $29 billion Restaurant Depot acquisition will win regulatory approval”
The acquisition of Restaurant Depot would move Sysco closer to a dominant position in both the broadline distribution and cash-and-carry markets. By integrating a warehouse model, Sysco can capture a wider demographic of small-scale food service clients, though the $29 billion price tag ensures intense scrutiny from antitrust regulators regarding market competition.
