FRENCH food catering company Sodexo has been exploring a potential acquisition of US rival Aramark as it seeks growth overseas, sources said.
The caterer has been discussing a possible purchase of Aramark on and off in recent months, they noted, asking not to be identified because the information is private.
Shares of Aramark jumped as much as 13 per cent in after-hours trading in New York, following the Bloomberg News report. The stock has gained 33 per cent this year, which brings its market capitalisation to about US$9.8 billion.
Sodexo, which had a market value of about 11.6 billion euros (S$16.6 billion) as of Wednesday (Sep 25), slumped as much as 13.6 per cent in early Thursday trading in Paris.
Any potential deal could face antitrust scrutiny, and the company would also need to secure the funds for such a sizeable acquisition. There is no certainty the deliberations will lead to a transaction, the sources added.
Representatives for Sodexo and Aramark declined to comment.
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Aramark provides catering services and facilities management to schools, hospitals, corporates, as well as major sports events in more than a dozen countries.
It is also a concessions provider to 60 national and state parks in the US. The company spun off its uniform-rental services unit, and listed the business as Vestis last year.
Vestis attracted a preliminary takeover approach by Elis – another French company – earlier this month.
Elis, a provider of uniform and linen cleaning services and workplace supplies, made the move after Vestis cut its fiscal-year revenue growth and profitability guidance in May.
Paris-based Sodexo specialises in providing food services to businesses, schools and hospitals. It has catered in several Olympics, including the most recent edition in Paris.
In the US, Sodexo merged its North American operations with Marriott International’s food services and facilities management business in 1997. Sodexo now has more than 104,000 employees across over 3,400 locations, its website showed. BLOOMBERG
