Sysco Corporation announced plans to acquire Restaurant Depot in a $29 billion transaction, marking one of the largest deals in the food service distribution industry.

The acquisition is designed to help Sysco expand into the cash-and-carry distribution model, which typically offers higher profit margins and has shown strong growth in recent years. Restaurant Depot operates a chain of membership-only warehouse stores that sell food and supplies directly to restaurants and other food service businesses.

The cash-and-carry model differs from Sysco's traditional delivery-based distribution business by allowing customers to purchase products directly from warehouse locations. This approach has gained popularity among smaller restaurants and food service operators seeking more flexible purchasing options.

The deal represents a significant expansion of Sysco's business model as the company seeks to diversify its revenue streams and capture growth in different segments of the food service market. Financial terms beyond the purchase price were not immediately disclosed.

The transaction is subject to regulatory approval and other customary closing conditions. No timeline for completion was announced.