Sysco (SYY) Acquisition presentation summary

Strategic rationale and growth outlook

• Acquisition creates a leading multi-channel foodservice distribution platform, combining broadline and cash & carry strengths.

• Combined entity targets faster growth, higher profitability, and greater shareholder returns than standalone operations.

• Plans to open 125+ new Restaurant Depot locations over two decades, leveraging a differentiated real estate strategy.

• Restaurant Depot brings a resilient, low-cost, high-margin business model with a track record of consistent growth.

• Enhanced customer value proposition through expanded assortment, fulfillment models, and loyalty programs.

Financial profile and synergy potential

• Pro forma revenue exceeds $98B, with adjusted EBITDA of $6.6B and free cash flow of $5.5B.

• Restaurant Depot delivers industry-leading 13% EBITDA margins and 93%+ free cash flow conversion.

• $250M in annualized net cost synergies expected, with potential for further upside from broader assortment and operational integration.

• Year 1 and 2 adjusted EPS accretion projected in mid to high single digits and low to mid-teens, respectively.

• Over $2B in additional annual free cash flow anticipated by year four, supporting share repurchases and dividends.

Capital structure and deleveraging plan

• Committed to rapid deleveraging, targeting a reduction of net debt to adjusted EBITDA by ~1.0x within 24 months post-close.

• Leverage expected to return to 2.75x target, with no large-scale M&A until this is achieved.

• Strong EBITDA cushion and working capital initiatives provide flexibility for accelerated debt reduction.