In a potential industry-shaking move, French food services and facilities management company Sodexo is reportedly exploring a buyout of its U.S.-based rival, Aramark. News of the potential deal sent Aramark’s shares surging over 10% in after-hours trading on Thursday.
The talks, which have been ongoing for months, would see Sodexo take over the Philadelphia-based food service company. However, this significant transaction would require Sodexo to secure substantial funding.
Aramark, valued at a hefty $9.8 billion, has experienced a strong year, with its shares climbing 33% on the New York Stock Exchange. Sodexo, on the other hand, boasts a market value of $13 billion.
While the potential deal could be a game-changer in the food services industry, it also faces potential antitrust scrutiny. It remains to be seen whether regulatory hurdles will stand in the way of a successful acquisition.
The merger talks are particularly noteworthy considering Sodexo’s past experience. In 1997, the company merged its North American operations with Marriott International Inc.’s food services and facilities management business. Today, Sodexo employs over 430,000 people across 45 countries.
The acquisition, if finalized, could have significant implications for the food services industry, potentially reshaping the landscape of contract catering and facilities management. The potential impact on employees, clients, and the competitive landscape will be closely watched as the talks progress.
