Bain Capital considers equity investment in Sodexo’s benefits and rewards business


by Pamela Barbaglia and Gwnalle Barzic

PARIS (Reuters) – Private equity fund Bain Capital is considering a stake in Sodexo’s benefits and rewards business as the company seeks investors who could help fund the group’s turnaround, sources told Reuters. .

Sodexo is seeking to divest a minority stake of around 30% in the business that has driven the group’s post-crisis recovery by providing employee benefit programs as well as meal vouchers and gift cards, said one of the sources, on condition of anonymity.

A bidding process is expected to start this week, and other private equity firms are expected to participate, the source added.

Sodexo’s benefits and rewards division saw revenue jump 7% in the first quarter of fiscal 2021-22, according to its reported results. Its valuation could exceed 2 billion euros, based on a result of around 200 million euros, the source said.

“We do not intend to sell the benefits and rewards business, or take it public,” a Sodexo spokesperson said. “We will remain the majority shareholder, and in this context we are currently studying the various strategic options.”

Bain Capital did not immediately respond to a request for comment.

The French collective catering group has been hit hard by the coronavirus pandemic and has had to cut jobs and stop paying dividends to stay afloat.

Unlike restaurants, companies like Sodexo – which supply businesses, government agencies, hospitals, schools and events – have no direct connection to consumers and have not been able to rely on home delivery. during confinements.

Sodexo announced at the beginning of the month that companies’ recourse to telecommuting this winter could weigh on its volumes.

The Bellon family, which owns 42.8% of the company’s capital, has given the green light to the division of the benefits and rewards division, the source said.

(Report Pamela Barbaglia London and Gwenalle Barzic Paris; French version Camille Raynaud)



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