DE Shaw has accumulated a stake worth more than $1bn in Sysco, adding significant weight to the hedge fund’s long-standing investment in the US food distribution giant as the company seeks to accelerate growth and cut costs through AI, according to a report by Reuters.
The New York-based investment firm has held shares in Sysco for around a decade, but the scale of its current position had not previously been disclosed, according to people familiar with the matter.
The investment comes as Sysco, which has a market value of about $40bn, prepares to refresh its board and increase its focus on technology and automation.
The company said it will appoint two new directors with backgrounds spanning technology, e-commerce and food-service distribution next month. The appointments are part of an effort to accelerate the use of AI across the business and improve operational performance.
DE Shaw said it supports the strategy.
Sysco has identified artificial intelligence and automation as important sources of future savings.
The company expects to generate about $100m of savings during fiscal 2027 through AI, automation and broader process improvements. Management has also said DE Shaw has played a role in helping accelerate the adoption of AI solutions.
For food distributors, AI could improve a range of functions, from forecasting demand and automating orders to optimising logistics and inventory management.
Sysco is also preparing to acquire Jetro Restaurant Depot in a transaction reportedly valued at about $2.9bn.
DE Shaw is expected to assist with financing for the acquisition, adding another area where the hedge fund could influence the company’s strategy and capital structure.
DE Shaw has historically taken a more selective approach to activism, but has previously pressed companies including Air Products, Riot Platforms, Verisk Analytics and FedEx to consider changes.
The firm manages roughly $100bn in assets for clients and describes itself as an investment and technology development firm.
