Sysco Corp (NYSE: SYY) shares are moving lower in extended trading Monday after the company announced a common stock offering.

Sysco Announces $1 Billion Offering

Sysco said Monday that it intends to offer $1 billion of common stock and grant the underwriters a 30-day window to buy up to an additional $150 million of shares in an offering.

The food-away-from-home distributor plans to use the net proceeds to finance a portion of the consideration for its pending acquisition of Jetro Restaurant Depot.

Sysco announced plans to acquire the wholesale foodservice provider in March. Under terms of the acquisition agreement, Jetro Restaurant Depot shareholders will receive $21.6 billion in cash proceeds and 91.5 million Sysco shares.

Sysco had $1.8 billion in cash and $4.8 billion of total liquidity as of June 27.

SYY Shares Move Lower After Hours

SYY Price Action: Sysco shares were down 3.70% in after-hours, trading at $80.45 at the time of publication on Monday, according to market data.