South African-born billionaire Natie Kirsh to sell U.S. business for $29.1 billion

South African-born billionaire Natie Kirsh, Africa’s oldest billionaire at 94, is set to sell his U.S. wholesale grocery businesses, Jetro Cash & Carry and Restaurant Depot, to Sysco Corp., the American food-service giant, for $29.1 billion including debt. The transaction will create one of the largest food-service groups in the United States.

Kirsh controls Jetro Restaurant Depot LLC, which operates 166 warehouse-style stores across 35 states, serving about 725,000 smaller restaurant owners and food-service operators. Under the deal, Jetro shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares, giving them roughly 16 percent ownership in the publicly traded company.

Combined operations expand warehouses, lower prices

The sale values Jetro at more than 14 times its operating income and exposes Kirsh to Sysco’s market capitalization of $33 billion on the New York Stock Exchange. Sysco plans to fund the acquisition with $1 billion in cash on hand and $21 billion in new debt and hybrid debt. The company has paused its share buyback program to focus on reducing leverage.

Jetro will continue operating as a standalone segment under President Richard Kirschner at its Whitestone, New York, headquarters. Sysco CEO Kevin Hourican said in a statement, “The combined company will have increased purchasing efficiency, enabling lower prices for customers. We also see opportunities to open new Jetro warehouses, bringing affordability to more communities and creating thousands of jobs.”

Kirsh’s journey: Family business to billions

Natie Kirsh’s rise traces back to Potchefstroom, where he began in a family-run malt business. After graduating from the University of the Witwatersrand in 1952, he returned to Eswatini with £1,200 ($1,500) and expanded the family business into grain milling and wholesale distribution. He founded Jetro in 1976, steadily growing it into a $16 billion revenue operation with $2.1 billion in earnings before interest, tax, depreciation and amortization (Ebitda) last year.

Beyond Jetro, Kirsh owns a $476 million stake in Jetro’s real estate unit and 54 percent of Abacus Property Group in Sydney, valued at $318 million. Other holdings include Abacus Storage King ($430 million), Tower 42 in London ($364 million), and cash estimated at $1.18 billion. Bloomberg estimates Kirsh’s net worth at $9.82 billion, with his interest in Jetro Holdings accounting for $6.85 billion.