Sysco Shares Decline After Pricing $1 Billion Stock Offering to Fund Jetro Restaurant Depot Acquisition
Sysco (NYSE:SYY) shares fell 1.3% in premarket trading on Tuesday following the announcement of a $1 billion stock offering, priced at $81 per share—a 3% discount from Monday's closing price—to help finance its planned acquisition of Jetro Restaurant Depot. The equity raise is part of broader financing for the $29.1 billion deal, which will also be supported by approximately $21 billion in new and hybrid debt. The offering increases Sysco’s outstanding share count, leading to shareholder dilution. In addition, the company has paused its share repurchase program as it focuses on reducing leverage post-acquisition. Sysco aims to reduce leverage by at least 1x within two years after closing the deal. The stock decline occurred amid broader weakness in U.S. equity futures.
Tickers: $SYY
Topics: acquisition funding debt financing share price decline stock offering