March 30 (Reuters) - Sysco said on Monday it would buy catering supplier Jetro Restaurant Depot in ​a $29  billion deal including debt, expanding the top U.S. food distributor's reach among ‌price-conscious independent restaurants.

Shares of Sysco, which has a market capitalization of $39.2 billion, were down More than 5% in premarket trading after the company also said it would fund the deal through $21 billion of ​new and hybrid debt, along with $1 billion of cash and equity on hand.

Family‑owned ​Jetro Restaurant Depot operates a wholesale cash‑and‑carry model, where customers pay upfront for ⁠goods such as food, beverages and take-out containers, complementing Sysco’s delivery network serving restaurants, ​hospitals and hotels.

The acquisition would be the latest major deal across consumer‑facing industries, following recent merger talks ​involving companies such as Unilever, Estee Lauder and Pernod Ricard, as firms look for scale to navigate weaker demand and persistently higher costs.

Restaurant Depot shareholders would receive $21.6 billion in cash and 91.5 million Sysco shares, according ​to the deal terms. They will own 16% of Sysco upon the closing of the deal, the companies ​said.

"Sysco and Jetro Restaurant Depot will enhance value for small independent restaurants and the consumers they serve ‌by ⁠expanding access to more affordable, fresh food products and delivering more choice and convenience," Sysco CEO Kevin Hourican said in a statement and highlighted how the combined company would lower prices for more customers.

Last year, US Foods ended merger talks with Performance Food ​in what would have ​been a tie-up between ⁠the nation's No. 2 and No. 3 food service distributors to challenge industry leader Sysco and cut costs for consumers.

Sysco also ​said it was pausing its share repurchase program and reaffirmed its ​annual forecasts.

Known ⁠for its steaks, fillets, and frozen-food products, which it supplies to fast-food chains such as KFC and Subway, Sysco had lifted its annual profit forecast earlier in the year, enjoying ⁠resilient ​demand even amid macroeconomic pressures.

Sysco expects the deal to add ​to earnings per share in the mid- to high-single-digits in the first year following its close, which is expected by ​the third quarter of Sysco's fiscal 2027.