But Capital values ​​its bid to participate in the Sodexo Benefits Unit – Reuters By sources

By Pamela Barbaglia and Gwénaëlle Barzic

LONDON (Reuters) – Bain Capital, France’s Sodexo (PA), is looking to bid for a share of the hospitality benefits and rewards services unit in Paris, as it seeks investors to help fund the group’s return. sources told Reuters.

Sodexo, with a market value of $ 12 billion ($ 13.7 billion), wants to sell a 30% minority stake in the group’s business, which has boosted the group’s subsequent recovery, by offering employee benefit programs and meal vouchers. and the gift card, one source said, spoke on condition of anonymity.

An auction process will begin this week, and other private equity firms are expected to join the race, the source said.

Sodexo’s earnings unit saw a 7% increase in organic revenue in its last quarter results. Its valuation could be in excess of 2 trillion euros, based on a basic profit of around € 200 million, the source said.

A spokesman for Sodexo said the company would retain majority control of the profits and rewards business, adding that “we are looking at a number of strategic options in this context”.

The spokesman also ruled out an initial public offering (IPO).

But he was not ready to comment immediately.

Sodexo, one of the world’s largest hospitality companies along with the UK Compass, has been hit hard by the pandemic and has had to cut jobs and halt dividend payments in order to move forward.

Unlike restaurants, catering companies like Sodexo, which serve government agencies, hospitals, schools and event organizers, have no direct contact with consumers and have been unable to focus on home deliveries during the lockout.

On January 6, 1966, Sodexo, founded by French billionaire Pierre Bellon, warned that a return to remote work caused by the Omicron variant would affect his income.

The Bellon family, which has a 42.8% stake in the company, has given the green light to reducing the benefits division, as well as offering fuel cards, incentive programs and sports season tickets.

($ 1 = $ 0.8770)