Proposed transaction covers five entities with combined annual revenue of more than Rs 700 crore and could become the largest deal in India’s contract food services sector
Sodexo is in discussions to acquire Shashi Catering Services in what could become the largest deal in India’s contract food services and facilities management sector, according to media reports.
The proposed transaction is expected to include Shashi Catering’s food services and facilities management operations across five entities, which together generate annual revenue of more than Rs 700 crore. The size of the deal could not be immediately ascertained. Reports said PwC is advising on the transaction.
Sodexo said it does not comment on market rumours. Shashi Catering did not respond to queries.
If completed, the acquisition would exceed previous deals in the sector. It would also be Sodexo’s largest acquisition in India since its purchase of Radhakrishna Hospitality Services Group more than a decade ago in a transaction valued at over Rs 500 crore.
The acquisition of Radhakrishna Hospitality Services Group helped the French company expand its presence in institutional catering and workplace services in India.
Expansion Plans
The reported talks come as global food-services companies continue to expand their presence in India. Industry executives cited in media reports said the acquisition would strengthen Sodexo’s position against Compass Group, which has also been expanding in the country.
In 2024, Compass India Food Services, a subsidiary of UK-based Compass Group, acquired sICS Foods to expand its presence in the institutional catering segment.
A potential acquisition of Shashi Catering would expand Sodexo’s operations, customer base and regional presence, particularly in western India, where the Gujarat-based company has a longstanding presence.
