Sodexo reportedly weighing up acquisition of Aramark

Sodexo is believed to be considering a potential acquisition of rival American caterer Aramark as the French foodservice giant seeks to grow overseas.

 

Bloomberg said discussions of a potential takeover have been taking place “on and off” in recent months, but there was no guarantee of a deal.

 

Shares of Aramark are understood to have jumped by as much as 13% following the report, while Sodexo’s slumped by over 9% during the same timeframe.

 

At the time of writing (27 September), Sodexo SA was valued at €76.45 (£63.78) per share, while Aramark was valued at $38.35 (£57.03) per share.  

 

Reuters said analysts at Oddo valued the proposal at around £11b [€13b or $14.5b], which could require Sodexo to issue more shares or raise equity to fund the takeover.

 

In Aramark’s first quarter earnings for 2024, the American caterer posted a 13% increase in revenue as a result of stronger sales volume, pricing and net new business.

 

Meanwhile, Sodexo reported 8.2% organic revenue growth over the same period, which was supported by new contracts and continued volume growth, especially in corporate services, sports and leisure and education.

 

Sodexo recently catered for the Paris Olympics, while Aramark UK celebrated its Everton Football Club contract win, which chief executive Helen Milligan-Smith is keen to develop further.

 

It comes after WSH, parent company of BaxterStorey, announced last week that it had acquired independent caterer Genuine Dining.

 

The Caterer has reached out to Sodexo, Aramark and analysts for comment.

 

A spokesperson for Sodexo said: “We do not comment on market rumours.”

 

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