PARIS--(BUSINESS WIRE)--Regulatory News:
Sodexo (PARIS:SW) (OTCBB:SDXAY) announced today that it has signed a binding agreement to acquire the Radhakrishna Hospitality Services Group (RKHS), one of the leading providers of Food and Facilities Management services in India.
Completion of this transaction is subject to customary closing conditions. The parties expect to close the transaction before the summer of 2009.
Founded in 1966, RKHS is today a leader in the Food and Facilities Management services market in India, serving a prestigious client base in 22 states and employs 20,000 people across more than 1,000 sites. For Fiscal year ended March 31, 2008, RKHS generated 70 million euros of revenues.
Sodexo has been a major provider of Food and Facilities Management services in India for more than 10 years. With this acquisition, Sodexo significantly reinforces its position and takes clear market leadership in India, a country with the second largest population in the world and which offers considerable future growth potential.
Through a new combined entity, representing Sodexo’s existing Food and Facilities Management operations in India together with RKHS, Sodexo will offer its clients a comprehensive range of tailored solutions designed to enhance their reputation, improve efficiency of their employees, preserve the value of their assets and optimise their resources.
With a view to bringing his valuable insight and knowledge of both the Company and the Indian market, Mr Raju Shete will become non executive Chairman of the combined entity.
Sodexo, founded in 1966 by Pierre Bellon, is a world leader in Food and Facilities Management services, with more than 355,000 employees on 30,600 sites in 80 countries. For Fiscal year ended August 31, 2008, Sodexo had revenues of 13.6 billion Euro. Listed on Euronext Paris, the Group’s current market capitalization is 5.3 billion Euro.