To help bankroll its planned $29.1 billion takeover of Jetro Restaurant Depot LLC, Sysco is tapping equity markets for $1 billion. Based in Houston, the food distributor serves institutions nationwide - including restaurants, hospitals, and schools - which means a transaction of this magnitude could reshape how many kitchens are provisioned.
Goldman Sachs Group Inc. and Toronto-Dominion Bank are running the offering, according to a Monday statement, with Bank of America Corp., JPMorgan Chase & Co., and Wells Fargo & Co. also working on it. People familiar with the transaction say the stock is being offered between $80.20 and $81.90 per share, which is as much as a 4% discount to Monday's $83.54 close. They added the book is already oversubscribed after a quiet early marketing push.
Pricing is expected later Monday, the people said. Sysco's shares were flat after-hours, leaving the company at nearly a $40 billion market value. The company's representative did not provide a comment immediately.
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Keep an eye on where the final price lands and who gets allocations. A full order book at a modest discount points to solid appetite, but the real read will be how the stock trades once the new shares are out. For your wallet, the key is that big acquisitions can rewrite a company's growth story and balance sheet at the same time, so watch how the numbers evolve as the process unfolds.
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