Sodexo Explores Acquisition of Aramark

(Reuters) – French food catering firm Sodexo (EPA:EXHO) is exploring a potential acquisition of its U.S. rival Aramark, according to a report by Bloomberg News on Wednesday.

Sodexo has been discussing the deal with food and facilities management provider Aramark over the past few months, as stated by sources familiar with the matter. However, it is important to note that there is no guarantee that these discussions will culminate in an actual deal. Furthermore, any potential acquisition could encounter antitrust scrutiny.

Sodexo would also need to secure funding for such a significant acquisition. Philadelphia-headquartered Aramark operates across 15 countries and boasts a market capitalization exceeding $9.8 billion, according to LSEG data.

Aramark declined to comment on the report, while Sodexo did not respond to a Reuters inquiry late Wednesday.

Recently, Sodexo provided catering services for the Paris Olympic Games and the Paralympics, and at the beginning of February, it spun off its voucher business Pluxee. The company is currently raising prices to mitigate the impact of high inflation, albeit at a slower pace.