Sodexo acquires Radhakrishna Hospitality Services for Rs.520 crore

Mar 11, 2009 Mergers and Acquisitions

French global food & facilities management company Sodexo has acquired Radhakrishna Hospitality Services Group (RKHS) to become the leading Food and Facilities Management services company in India. The deal, valued at approximately $100 million (Rs.520 crore), was formalised yesterday and informed to the Paris Stock Exchange. The deal, however, does not include RKHS’s other businesses, including its retail arm or logistics & supply chain. BMR Advisors were the sole advisors to RKHS. With this acquisition, Sodexo has increased the distance between itself and its peers like Compass and Aramak.

Founded over 40 years ago, RKHS is a leader in the Food and Facilities Management services market in India, with 20,000 people across more than 1,000 sites. The company generated revenues of €70 million for the year ended March 31, 2008. Sodexo employs more than 355,000 employees on 30,600 sites in 80 countries. For the year ended August 31, 2008, Sodexo had revenues of €13.6 billion.

Mr.Raju Shete will become the non-executive chairman of the combined entity and continue to own and manage his food retail business under Radhakrishna Foodland separately.