Franco-US food M&A is $10 bln recipe for heartburn

Aramark

26/09/2024 10:45

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
       LONDON, Sept 26 (Reuters Breakingviews) - Sodexo, the
$13 bln caterer, is eyeing US rival Aramark according to
Bloomberg. The returns look low, absent huge cost savings, and a
cash deal would leave a debt headache. Recent iffy takeovers in
the business-services sector show that scale isn’t always worth
the risk.
    Full view will be published shortly.
    Follow @Breakingviews on X
    
    CONTEXT NEWS
    Sodexo is exploring a potential acquisition of its U.S.
rival Aramark, Bloomberg reported on Sept. 25 citing people
familiar with the matter.
    Sodexo has been periodically discussing the deal with food
and facilities management provider Aramark in recent months, the
report said.
    Contacted by Reuters, Aramark and Sodexo declined to comment
on the report.
    Shares in Sodexo were down 7.4% to 72.95 euros as of 0850
GMT on Sept. 26.

 (Editing by Neil Unmack and Oliver Taslic)
 ((For previous columns by the author, Reuters customers can
click on  PROUD/ 
liam.proud@thomsonreuters.com))