MBABANE - Eswatini-born billionaire Nathan ‘Natie’ Kirsh has agreed to sell his food distribution empire, Jetro Restaurant Depot, in a landmark US$29.1 billion (about E500 billion) transaction that will reshape the United States food-service industry.
The deal will see Sysco, the world’s largest food-service distributor, acquire Jetro Restaurant Depot, a company Kirsh built from a single warehouse in Brooklyn, New York, into a nationwide operation serving hundreds of thousands of businesses.
The acquisition marks one of the largest transactions in the global food distribution sector and underscores Kirsh’s legacy as one of Eswatini’s most successful global entrepreneurs.
According to details released on Monday, Sysco will acquire Jetro for US$29.1 billion, including debt. Jetro shareholders are set to receive US$21.6 billion in cash along with 91.5 million Sysco shares, ultimately owning about 16 per cent of the combined entity.
The deal values Jetro at more than 14 times its operating income, reflecting strong investor confidence in the company’s performance and growth potential. Sysco, which supplies food to restaurants, hospitals and schools across the United States, had a market capitalisation of approximately US$39 billion prior to the announcement.
However, investor reaction to the acquisition was cautious, with Sysco’s share price falling by as much as 15 per cent following the news, despite having gained 11 per cent since the start of the year.
The acquisition will create one of the largest food-service groups in the United States, combining Sysco’s extensive distribution network with Jetro’s fast-growing cash-and-carry warehouse model.
Kirsh founded Jetro in 1976 with a simple but powerful mission: To provide independent restaurant operators with access to quality food at affordable prices. Nearly five decades later, that mission remains at the core of the business. Jetro now operates 166 large-format warehouse stores across 35 States, serving more than 725 000 small restaurant owners and food-service operators.
Often compared to a wholesale version of Costco, Jetro’s model has proven particularly successful among independent restaurants seeking cost-effective supply solutions.
*Full article available on Pressreader*
Eswatini-born billionaire Nathan ‘Natie’ Kirsh. (Courtesy pic)