Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco is striking a major deal. Photo by Brandon Bell/Getty Images

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation. Photo courtesy of HPE

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Elizabeth Gerbel, CEO and founder of Houston-based E.A.G. Services Inc., shares how to navigate M&A activity for both startups and large companies. Pexels

All is not lost in a merger or acquisition, says this Houston energy exec

Guest column

Nervous about an upcoming merger or acquisition? You're not alone. Last year, there were nearly 15,000 mergers and acquisitions in the U.S., according to the Institute for Mergers, Acquisitions and Alliances. These transactions, although executed with optimistic intentions, don't always work out. What is it that separates those that deliver from those whose results simply fall flat?

While you won the legal battle, the real culprit to a failed merger or acquisition transaction lies in post-deal activities such as integrating the divesting company's assets into the acquiring company's existing systems, processes, and organizational structure. If executed poorly, companies could face several hurdles, including:

  • Increased acquisition costs
  • Loss in previously efficient business processes
  • Reduced data quality in current and acquired assets
  • Extended TSA timeline

With the stakes being high, it is critical for each step of a merger or acquisition to be rock solid before moving on to the next stage. In fact, when executed successfully, an M&A transaction can significantly benefit both companies — from startups to well-established corporations.

A strategy for M&A data integration

In order to facilitate efficient and effective merger or acquisition, the critical success factors focus on these driving goals: Minimizing organizational disruption and Maximizing ROI. To achieve these goals, we execute three main stages for every merger and acquisition.

  1. Planning
  2. Analysis
  3. Execution

We start with thorough planning, think of planning as the foundation for a successful merger or acquisition. Without a good plan, the company will be vulnerable to all sorts of structural weaknesses. To prevent key elements from falling through the cracks, companies must define objectives and data requirements, maintain strong communications, and develop both short-term and long-term expectations.

The next step – analysis – since data is absolutely essential in mergers and acquisitions. There is a lot to watch out for: What's the best way to extract and convert the acquired data? Will IT or business support need to be permanently added? What system configuration changes are required? What are the impacts to current business processes and internal audit controls? Will additional training be required? The answers to these questions are highly individualized to each merger and acquisition, and they'll impact how seamless the transition will be. Many people gloss over this stage but then realize the criticality not only in the case of a merger or acquisition but also in the case of a future divestiture.

Finally, the last stage: Execution. This stage is one of the main reasons why some mergers and acquisitions may fall short of expectations. To avoid common issues stemming from poor execution – including disruption of previously effective business processes, impaired customer service, and increase in the cost of the merger or acquisition – we coordinate roles and responsibilities, ensuring that all key tasks are executed. From day one to full integration, we continually monitor to ensure the company is on track to meet its initially defined objectives.

The risks and benefits of a merger or acquisition

I'll be candid: Without a solid foundation through adequate preparation, a merger or acquisition is set up to fail. This risk can be higher for startups and small companies, which don't have the resource buffer that some larger firms can fall back on. Large companies may face a different risk, business processes and data may not be aligned with their current state. And yet, according to Economy Watch, an extensively strategized merger or acquisition transaction, beyond increasing the company's size, can yield significant benefits that include:

  • Improving its strategic position
  • Entering a new market
  • Developing new assets
  • Lowering operational costs
  • Expanding market influence

For smooth mergers and acquisitions, we recommend a multi-step process so that you can identify and reduce risks, condense your integration timeline, and quickly capture value. Because despite the challenges, not all is lost during a merger or acquisition – and there is much to be gained.

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Elizabeth Gerbel is the CEO and founder of Houston-based E.A.G. Services Inc.

International beauty giant Shiseido Company Ltd. has acquired Houston-founded Drunk Elephant. Photo via Business Wire

Houstonian's skincare line acquired for $845 million

A beautiful acquisition

A skincare line with ties to Houston is joining the ranks of other popular beauty brands this week. International beauty giant Shiseido Company Ltd. has announced that it is acquiring Drunk Elephant in a reported $845 million deal.

Houstonian Tiffany Masterson, chief creative officer, founded the company in Houston in 2012. The quality of products and playful branding attracted a broad range of demographics as the company experienced exponential growth.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

According to the release, the acquisition will allow Drunk Elephant's products to expand more throughout America, and enter new markets in Asian and Europe. The new subsidiary will also have support from Shiseido's Global Innovation Center and Digital Center of Excellence.

"This transaction is squarely aligned with Shiseido's VISION 2020 goal of accelerating growth and creating value through strategic partnerships," says Masahiko Uotani, president and CEO of Shiseido, in a news release. "I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long-term mission of 'Beauty innovations for a better world.'"

Masterson will maintain her role as chief creative officer and add the title of president for the company. She will report to Marc Rey, CEO of Shiseido Americas and chief growth officer of Shiseido.

"Drunk Elephant is built on a strong brand foundation and a unique philosophy that fits perfectly with Shiseido's values and skincare heritage," Rey says in the release. "Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas."

The beauty industry is having a bit of a moment right now as consumers — who have shelves and shelves of products to choose from — are drawn to specific products.

"While reasons for acquisitions in the beauty space vary, we are seeing that some of the big players are seeking to balance their portfolios by creating products and services that consumers find relevant," says Laura Gurski, Accenture's global lead for consumer goods and services, in a statement.

"It is crucial that brands completely reinvent the beauty experience, making it much more than a transactional event," she continues. "This is what startups and disruptors do best. They create a collaboration with each consumer, allowing them to participate and experience products, services and brands in new ways."

According to Accenture Strategy's research on M&A in consumer goods, companies acquiring new capabilities represents 47 percent of activity and new technologies represents 35 percent of activity. These figures are on par with more traditional reasons for M&A, like new industries (43 percent) and new geographic markets (37 percent).

"For the first time, beauty companies have the opportunity to achieve real differentiation by taking their relationships with consumers to a completely new level," Gurski says.

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Report: These 10 jobs earn the biggest salary premiums in Texas

A move to Texas bolsters earnings for some, and a new SmartAsset study has revealed the top professions where the median annual earnings in the Lone Star State exceed the national median.

The report, "When it Pays to Work in Texas — and When It Doesn’t," published in April, analyzed over 700 occupations to determine which have the biggest "Texas premium" — meaning jobs where the price-adjusted median annual pay in Texas most exceeds the national median for the same occupation — and which jobs have the biggest “Texas penalty,” where the statewide median annual pay falls furthest below the national median. Salaries were sourced from the U.S. Bureau of Labor Statistics (BLS) and adjusted for regional price parity.

According to the report's findings, geoscientists have the biggest "Texas premium" and make a $159,903 median annual salary. Texas' salary for geoscientists is 61 percent higher than the national median for the same position (after adjusting for regional price parity).

"Texas’s large petroleum industry helps explain why employers in the state retain so many geoscientists," the report's author wrote. "In fact, the Lone Star State is home to more geoscientists than any other state except California."

There are more than 3,600 geoscientists working in Texas, SmartAsset said.

These are the remaining top 10 occupations with the biggest "Texas premiums" (salaries are price-adjusted):

  • No. 2 – Commercial pilots: $167,727 median Texas earnings; 37 percent higher than the national median
  • No. 3 – Sailors: $67,614 median Texas earnings; 36 percent higher than the national median
  • No. 4 – Aircraft structure assemblers: $83,519 median Texas earnings; 35 percent higher than the national median
  • No. 5 – Ship captains: $108,905 median Texas earnings; 27 percent higher than the national median
  • No. 6 – Nursing instructors (postsecondary): $100,484 median Texas earnings; 26 percent higher than the national median
  • No. 7 – Tax preparers: $63,321 median Texas earnings; 25 percent higher than the national median
  • No. 8 – Chemists: $104,241 median Texas earnings; 24 percent higher than the national median
  • No. 9 – Health instructors (postsecondary): $128,680 median Texas earnings; 22 percent higher than the national median
  • No. 10 – Engineering instructors (postsecondary): $129,030 median Texas earnings; 22 percent higher than the national media

The careers where Texas workers earn less

SmartAsset said an editor is the Texas profession where workers earn the furthest below the median for the same occupation elsewhere in the U.S. Not to be confused with film and video editors, BLS defines editors as those who "plan, coordinate, revise, or edit written material" and "may review proposals and drafts for possible publication."

The study found editors make a price-adjusted median wage of $29,710, which is 61 percent lower than the national median for the same position, and there are nearly 8,200 editors in Texas.

It's worth noting that the salaries for editors may be skewed by the fact that there are not major publications in rural areas of Texas, and other professions may also have financial deviations for similar reasons.

Several healthcare jobs also appear to have the worst penalties in Texas compared to elsewhere in the country. Home health aides are the second-worst paying professions in the state, making a median wage of $24,161.

"More home health aides work in Texas than in nearly any other state, with only California and New York employing more," the report said. "However, the more than 300,000 Texans in this occupation earn median annual pay that is about 31 percent below the national median, after adjusting for regional price parity.

SmartAsset clarified that pay penalties are not consistent "across the board" for other healthcare occupations in Texas.

"For physical therapy assistants, occupational therapy assistants, and postsecondary nursing instructors, Texas may be an especially strong place to work, with these occupations offering 'Texas premiums' of between 17 percent and 26 percent," the study said.

These are the remaining top 10 occupations where median annual earnings in Texas fall furthest below the national median for the same occupation:

  • No. 3 – Cardiovascular technicians: $49,382 median Texas earnings; 27 percent lower than the national median
  • No. 4 – Semiconductor processing technicians: $38,295 median Texas earnings; 25 percent lower than the national median
  • No. 5 – Tutors: $30,060 median Texas earnings; 25 percent lower than the national median
  • No. 6 – Control and valve installers: $56,496 median Texas earnings; 24 percent lower than the national median
  • No. 7 – Mental health social workers: $46,109 median Texas earnings; 23 percent lower than the national median
  • No. 8 – Clinical psychologists: $74,449 median Texas earnings; 22 percent lower than the national median
  • No. 9 – Producers/directors: $65,267 median Texas earnings; 22 percent lower than the national median
  • No. 10 – Interpreters/translators: $46,953 median Texas earnings; 21 percent lower than the national median

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This article originally appeared on CultureMap.com.

Houston rises in 2026 ranking of best U.S. cities to start a business

Best for Biz

Houston has reaffirmed its commitment to a business-friendly environment and now ranks as the 26th best large U.S. city for starting a business in 2026. The city jumped up eight places after ranking 34th last year.

WalletHub's annual report compared 100 U.S. cities based on 19 relevant metrics across three key dimensions: business environment, access to resources, and costs. Factors that were analyzed include five-year business survival rates, job growth comparisons from 2020 and 2024, population growth of working-age individuals aged 16-64, office space affordability, and more.

Florida cities locked out the top five best places in America for starting a new business: Tampa, Orlando, Jacksonville, Hialeah, and St. Petersburg.

Houston's business environment ranked as the 19th best in the country, and the city ranked 51st in the "business costs" category. However, the city lagged behind in the "access to resources" ranking, coming in at No. 72 overall. This category examined metrics such as Houston's working-age population growth, the share of college-educated individuals, financing accessibility, the prevalence of investors, venture investment amounts per capita, and more.

"From the Gold Rush and the Industrial Revolution to the Internet Age, periods of innovation have shaped our economy and driven major societal progress," the report's author wrote. "However, the past few years have been particularly challenging for business owners in the U.S., due to factors such as the COVID-19 pandemic, the Great Resignation and high inflation."

Earlier this year, WalletHub declared Texas the third-best state for starting a business in 2026, and several Houston-area cities have seen robust growth after being recognized among the best career hotspots in the U.S. Entrepreneurial praise has also been extended to five local companies that were named the most innovative companies in the world, and six powerhouse female innovators that made Inc. Magazine's 2026 Female Founders 500 list.

Texas cities with strong environments for new businesses
Multiple cities in the Dallas-Fort Worth Metroplex can claim bragging rights as the best Texas locales for starting a new business. Dallas ranked highest overall — appearing 11th nationally — and Irving landed a few spots behind in the 16th spot. Arlington (No. 23), Fort Worth (No. 30), Plano, (No. 35), and Garland (No. 65) followed behind.

Only six other Texas cities earned spots in the report: Austin (No. 24), Lubbock (No. 36), Corpus Christi (No. 39), San Antonio (No. 64), El Paso (No. 67), and Laredo (No. 76).

Austin tied with Boise, Idaho and Fresno, California for the highest average growth in the number of small businesses nationally, while Corpus Christi and Laredo topped a separate list of the U.S. cities with the most accessible financing.

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This article originally appeared on CultureMap.com.

Houston humanoid robotics startup taps Amazon veteran to lead manufacturing

new hire

Persona AI, a Houston-based startup that’s developing AI-powered humanoid robots for manufacturers and other businesses, has hired Brian Davis as head of global manufacturing.

Davis previously guided teams at Amazon Robotics and Dell Technologies. During his tenure at Amazon Robotics and Dell, both companies saw major increases in manufacturing volumes within a four-year period. Davis oversaw manufacturing, supply chain, logistics, quality assurance and real estate.

“Davis steps into this role [at Persona AI] as industrial enterprises face an urgent and accelerating challenge: a structural shortage of capacity for welding, fabrication, and heavy maintenance in dynamic environments, precisely the high-value, high-risk tasks where humanoid robots can deliver the greatest impact,” according to a company news release.

Davis comes aboard as Persona AI, founded in 2024, seeks to meet demand generated by deals with HD Hyundai and POSCO Group to make humanoids for shipyards and steel plants, and by a pilot program with the State of Louisiana.

“Now is the perfect time to accelerate our production capabilities as we rapidly close the gap between what’s possible in the lab versus what’s driving real commercial value,” Davis says.

“Building industrial-rated humanoid robots and production-deployable AI is only one piece of the puzzle,” he adds. “Producing humanoids at scale will require systematic supply chain management, stringent quality control, and building the playbook for safe, high-volume manufacturing. That’s what I’m here to build.”

Last year, Persona AI raised more than more than $10 million in pre-seed funding. The company also named a new head of commercial strategy in March.
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