US Stock Market Move | Sysco Corporation (SYY.US) made a bold move to acquire for 29 billion US dollars, causing its stock price to plummet by nearly 12%.

On Monday, Sysco Corporation (SYY.US) fell nearly 12% to $72.06. In terms of news, the largest food distributor in the US catering to restaurants, hospitals, and schools, Sysco Corporation, reached an agreement to acquire family-owned business Jetro Restaurant Depot for about $29 billion (including debt). According to the acquisition terms announced on Monday, Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million shares of Sysco Corporation stock. Both companies stated that the total transaction value, including debt, is $29.1 billion, which is equivalent to over 14 times Restaurant Depot's annual revenue. Sysco Corporation stated that they plan to provide funds for the cash consideration part of the transaction through $21 billion in additional and mixed debt, along with $1 billion in existing cash and equity. The company also mentioned that they will suspend their stock buyback program, prioritize quickly reducing their leverage ratio after the transaction is completed, and resume the buyback program once progress is made.