Sodexo announced Wednesday that it has acquired 100% of Puras do Brasil for an enterprise value of approximately €525 million.
Founded 30 years ago, Puras do Brasil is the number two On-site Service solutions operator in Brazil, a fast-growing market. Puras do Brasil has revenues of around €0.5 billion and employs 22,000 persons across the country, operating across 1,300 sites.
Michel Landel, Sodexo Chief Executive Officer, commented that with this significant transaction, Sodexo is creating a leading actor in Brazil, one of the most important markets in the world.
This is in line with Sodexo’s strategy to consolidate its position in high-potential emerging economies by seizing the best opportunities. Puras do Brasil is a successful, well-managed business with strong values and high-calibre teams, said Landel.
The current Chairman and CEO of Puras do Brasil, Hermes Gazzola, will be named Non-Executive Chairman of the Board of Sodexo's enlarged On-site Service solutions activities in Brazil and will help management continue to develop successfully the business in Brazil given the numerous market growth opportunities.
In accordance with Sodexo's long term vision and strategy, this important move demonstrates the Group's confidence and commitment to local and international clients, as well as to the Brazilian economy, noted a company release.
Financing of this transaction represents less than one year of Sodexo's consolidated operating cash flows. Accordingly, on a pro-forma basis following this acquisition, Sodexo's consolidated net financial debt as of 28 February 2011 would represent just 46% of shareholders' equity.
Sodexo designs, manages and delivers comprehensive service solutions through On-site Service Solutions and Motivation Solutions. Sodexo becomes the leader in On-site Service Solutions in Brazil following the acquisition of Puras do Brasil.
Sodexo serves as the strategic partner for companies, institutions and local authorities who place a premium on performance, as it has since Pierre Bellon founded the company in 1966. Sodexo's 380,000 employees, in 80 countries around the world, design, manage and deliver an unrivalled array of comprehensive On-site Service Solutions and Motivation Solutions.
Sodexo invented a new form of service business that promotes the fulfillment of its employees and contributes to the economic and social development. In 2008, the Group changed its name from Sodexho Alliance to “Sodexo". The Group is also rejuvenating its virtual identity including a simpler, more modern design of its logo.
7th Sept. 2011