Apr. 1 at 1:05 PM
$SYY Unlike Citi BUT LIKE @jimcramer - BoAML LIKES the merger
Sysco Corporation
Takeaways from SYY meetings on
Restaurant Depot acquisition
Reiterate Rating: BUY | PO: 102.00 USD
Conservative estimate of cost synergies
Legacy SYY stands to benefit, as higher aggregate volumes should move SYY into better
pricing tiers with suppliers while maintaining JRD’s value positioning.
Likely upside on revenue given cross-sell opportunity
SYY embeds no revenue synergies but cross selling opportunities are plentiful.
JRD to maintain autonomy, preserve customer perception
JRD will be run distinctly, with its existing CEO retaining full authority over pricing,
merchandising, compensation, and capital allocation, minimizing execution risk and
cultural disruption.
Regulatory viewed as manageable, based on history