The hedge fund of billionaire investor Nelson Peltz, Trian Partners, has just taken a big leap into Sysco Corp. to the tune of $1.6 billion, grabbing a 7 percent stake and sending shares skyward.

Peltz called the shares of Sysco, the largest food distributor in the United States, “undervalued.” On the news, shares took off, rising 8.7 percent to $41.87 on Friday, which represented a 20-month high, according to a Reuters report.

Trian will now be the largest shareholder of Sysco, and thus will seek proper representation on the board overseeing the company.

Peltz has been active in the food and beverage industry, becoming involved in both mergers and spinoffs, and helped get Mondelez International Inc. out from under the umbrella of Kraft Foods back in 2011. In addition, Trian has been trying to convince PepsiCo to separate its snack division from the beverage side of the business.

Sysco hasn’t had a great run in the last three years, reporting a rise in quarterly profit just once over that period. It is a huge distributor that is the supplier of restaurants, schools, hospitals, and even the military.

The company back in June had contemplated buying rival US Foods for $3.5 billion, but the Federal Trade Commission blocked that deal.

Trian and Peltz, however, see some serious potential in Sysco — with some changes. For one thing, they need to improve their operating margins and enhance their working capital efficiency, the fund believes. Also, Trian may push Sysco to take on a little debt in order to boost shareholder returns.

Sysco may also be pushed to tie its compensation packages to executives to the performance of the company for incentive purposes.