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.

Planning
Analysis
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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Texas A&M, UH rise in global rankings of universities attracting the most attention

visibility report

Houston and Texas universities had a strong showing on the 2026-27 Global University Visibility (GUV) Rankings compiled by D.C.-based higher ed market research firm American Caldwell.

Texas A&M ranked No. 6 on the list—the top rank of any Texas university. Meanwhile, the University of Houston ranked No. 52, a 15-spot jump from its previous ranking.

The GUV rankings rate colleges that garner the most global attention via news coverage, social media influence, website traffic, YouTube views, and general public interest. GUV evaluated over 1,200 universities across 193 United Nations-recognized countries.

Texas A&M, with its No. 6 global ranking, also claimed the No. 5 spot among U.S. institutions. The university climbed 21 spots from its previous rank.

“News mentions were a driver of Texas A&M’s movement in this year’s rankings, and earned media remains one of the strongest signals of relevance,” Tim Doty, associate vice president for earned media at Texas A&M, said in a news release. “Much of that visibility begins with our faculty and research experts, whose work helps explain, solve and give context to issues people care about. When Texas A&M experts appear in news stories about research, discovery, national security, agriculture, health, engineering, service and the future of Texas, audiences see the university not only as large or well known, but as useful, relevant and necessary to the conversations shaping our state and country.”

In the “Public Interest” category, UH also claimed a top 10 global ranking at No.6. UH touts its overall GUV rankings success to Guggenheim Fellowships, MacArthur “Genius” grants, National Academy membership, studies like researchers breaking the superconductivity temperature record, and success on the football field and basketball courts.

“Across the board, there is no question that the University of Houston is a brand on the rise,” Shawn Lindsey, interim vice president for marketing and communications, said in a news release. “People are seeing our story, hearing about the amazing things happening at UH and actively seeking us out to learn more. We are seeing it in record-high student applications, we are seeing increases in trademark licensing revenue, our faculty are earning global accolades. It’s an exciting time to be a Houston Cougar.”

Other Texas institutions to make the top 250 on the list include:

No. 22 The University of Texas at Austin
No. 104 University of Texas at Dallas
No. 159 Texas Tech University
No. 178 Rice University
No. 191 University of North Texas
No. 248 Texas State University

For the fourth year in a row, Harvard University secured the top spot on the list, followed by MIT, Stanford University and Purdue University. The University of Oxford was the top non-U.S. institution at No. 5.

See the full list here.

Astrodome group seeks new ideas for future of historic Houston landmark

8th Wonder News

The Astrodome may have once been touted as the Eighth Wonder of the World, but its current condition remains one of Houston's most famous follies. In an effort to find a better use for the iconic building, The Astrodome Conservancy has released a Request for Information (RFI), inviting proposals from interested parties on how the historic landmark might be used in the future. Respondents have until September 8 to submit their responses at the official conservancy site.

“This RFI is an opportunity for the market to help shape a shared vision for the Astrodome,” said Beth Wiedower Jackson, executive director of the Astrodome Conservancy, in a release. “We are looking to gather creative, feasible, and financially viable ideas that reflect both the significance of the Astrodome and its potential as a catalyst for future development.”

When the Astrodome opened in 1965, it was a marvel of engineering and the world's first air-conditioned, multi-purpose domed sports stadium. It remained an iconic part of Houston until changing trends in sports sent the Astros and the Houston Livestock Show and Rodeo to newer stadiums with modern amenities. After the 2003 rodeo, the dome was closed, except for a brief use as an evacuation shelter for Hurricane Katrina.

A decades-long fight over what to do with the Astrodome followed that closure. The City of Houston condemned the building for various code violations in 2009. Fully renovating it would cost over $700 million — a tall order for taxpayers. Demolishing it would be far cheaper (around $55 million), but its status on the National Register of Historic Places makes that virtually impossible. Meanwhile, Harris County pays hundreds of thousands of dollars a year to maintain the building.

Proposals for the space have run the gamut. In 2024, the Astrodome Conservancy proposed Vision: Astrodome, which would transform the building into an indoor mall and event space. That still appears to be the foundation of the plan according to the RFI.

The RFI is seeking private investment to partner with the Harris County property. Proposals are merely for planning purposes and will not automatically lead to contracts for development. Section 2.3 states that participants in the new mixed-use space will "require back-of-house infrastructure improvements to support reliable operations at scale," likely meaning that the plan is to fund some of the much-needed renovations via tenants. However, the RFI points out that participants in the revitalized Astrodome will also be eligible for historic space preservation tax credits.

While Vision: Astrodome seems committed to using the stadium as a public space for the entertainment of Houstonians, the RFI is clear other options are on the table.

The Astrodome possibly being used to house a data center is specifically mentioned, though the RFI mandates such a proposal would need to be very upfront about the infrastructure demands and continuing operating costs of such a project. Public backlash against data centers led to Governor Greg Abbott ordering a pause on grid connections to them pending further review.

"The Astrodome presents a unique opportunity for adaptive reuse and redevelopment that honors its legacy while positioning it for long-term community and economic impact," said the conservancy in the release announcing the RFI.

Houston lands $14M in latest CPRIT grants to advance cancer, lab-on-chip research

cancer funding

Thanks to a $4 million grant from the Cancer Prevention and Research Institute of Texas, the University of Houston has recruited a top-tier researcher developing AI-powered lab-on-a-chip technology for early cancer detection.

Tianhong Cui, a professor of mechanical engineering at the University of Minnesota Twin Cities and an adjunct professor of physiology and biomedical engineering at the Mayo Clinic, specializes in microelectromechanical systems and advanced manufacturing at microscale and nanoscale levels. In addition to lab-on-a-chip systems, Cui focuses on biosensors and water sensors.

Lab-on-a-chip devices deliver big results in a tiny package

The CPRIT grant supports Cui’s development of a microscale lab-on-a-chip system for early cancer detection and post-therapy monitoring.

“Lab-on-a-chip technology crams an entire lab’s worth of functions into a tiny device roughly the size of a USB stick,” according to Built In.

Common uses for the technology include medical diagnostics, point-of-care testing, and environmental monitoring.

Lab-on-a-chip work being carried out at UH and elsewhere in Houston promises to revolutionize cancer detection and treatment. For instance, Houston biotech company iBiochips, a spinout from the Houston Methodist Research Institute, makes lab-on-a-chip devices that bolster cancer detection and therapy.

Four local organizations gain $10 million in CPRIT grants

Four other Houston-area organizations received an additional $10 million in grants in CPRIT’s latest round of funding:

University of Texas MD Anderson Cancer Center received two $2 million grants to recruit researchers Zheqi Li of Harvard University’s Dana-Farber Cancer Institute and Nikolaos Koundouros of Weill Cornell Medicine.
Rice University received one $2 million grant to recruit researcher Maria Akoppyan, formerly of the University of Southern California.
UT Medical Branch at Galveston received one $2 million grant to recruit researcher Cristina Santarossa of Johns Hopkins University.
Houston-based biopharma company Pulmotect received one $2 million grant to support better outcomes for cancer patients by activating immunity in the lungs as a first line of defense against germs.

The funding was part of $35 million in new CPRIT grants for institutions and companies across Texas approved at the organization's most recent meeting. To date, CPRIT has awarded more than $4.2 billion in grants.

“These awards support research across the cancer continuum from prevention to new classes of therapeutics,” said Dr. Scott Hiebert, chief scientific officer of CPRIT, said in a news release. “The work of these investigators will impact the lives of Texans across the state.”

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