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DE Shaw amasses $1bn-plus stake in Sysco as AI push ramps up
Sysco expects AI and automation to drive about $100 million in savings in fiscal 2027, as it plans board refresh and a pending Jetro Restaurant Depot acquisition.
DE Shaw has built a stake in US food distributor Sysco worth more than $1 billion, Reuters reported, increasing the weight of the New York investment firm’s roughly decade-long position as Sysco accelerates growth and cost cuts with AI.
Sysco, which has a market value around $40 billion, is preparing to refresh its board and has said it will appoint two new directors with backgrounds spanning technology, e-commerce and food-service distribution next month. The company expects artificial intelligence and automation to be key sources of future savings, targeting about $100 million of savings during fiscal 2027 through AI, automation and broader process improvements.
The retailer and distributor is also preparing to acquire Jetro Restaurant Depot in a transaction reportedly valued at about $2.9 billion, and DE Shaw is expected to play a role in helping finance the acquisition, according to Reuters. Reuters also said Sysco management has indicated DE Shaw has helped support the adoption of AI solutions, which could be used for demand forecasting, automating orders and improving logistics and inventory management.
DE Shaw typically takes a selective approach to activism, but it has previously urged changes at companies including Air Products, Riot Platforms, Verisk Analytics and FedEx, according to the report. The firm manages roughly $100 billion in assets for clients and describes itself as an investment and technology development firm.