Sodexo in talks to buy ISS catering activities

Mergers and acquisitions Photo: To Go

Sodexo is offering much less than the NIS 350 million asking price.

Sodexo, managed by CEO Udi Ben Shimol, is negotiating to acquiring the catering activity of ISS Israel, sources inform "Globes."

It was learned in late 2018 that ISS was seeking to shed its activity in Israel, among other things in catering, in addition to its exit from 12 other countries.

As far as is known, Sodexo is offering a much lower price than the original price of NIS 350 million for all of its activity in Israel that ISS was aiming at. Contacts between the parities are nevertheless continuing in order to reach understandings on the price. There is no certainty that a deal will be completed. There are other parties also negotiating with ISS, among other things on additional activities.

ISS Israel's share of the catering market for local companies is estimated at 18%, with NIS 500 million in annual sales. ISS Israel competes with Zehavit Cohen's Schulz and other companies, while Sodexo is the fifth largest company in the Israeli catering market. It also operates in dining club cards offering discounts at restaurants, in which it competes with 10bis.

ISS Israel, managed by CEO Hezi Ovadia, works in other areas besides catering. It provides a package of services for large companies, among other things cleaning and catering for their offices. Its customers include large companies in the local market, such as Intel, Israel Aerospace Industries, Unilever, Tnuva, Strauss Group, and Osem.

ISS Israel has 8,000 employees, and has operated in Israel since 1999. In the years since then, it acquired catering company Norcate and cleaning company Ashmorot. ISS Israel provides catering services to 140 customers in 250 dining rooms, and provides 100,000 portions daily. The company also has 300 cleaning customers.

ISS Israel belongs to ISS, a global public company with headquarters in Denmark. ISS's revenue totaled over $13 billion in 2017. It is active in 50 countries and has 500,000 employees.

Published by Globes, Israel business news - en.globes.co.il - on August 8, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Mergers and acquisitions Photo: To Go
Mergers and acquisitions Photo: To Go
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