Sodexo buys Brazilian service firm for almost $740M

Sodexo, the food-and-facilities multinational headquartered in Paris, has acquired 100 percent of Puras do Brasil for an enterprise value of approximately €525 million ($737.7 million).

Founded 30 years ago, Puras do Brasil provides services ranging from catering and HVAC to public-space management. It is the second largest onsite service operator in Brazil.

Puras do Brasil has revenues of around €500 million ($702.6 million) and employs 22,000 across Brazil, operating across 1,300 sites.

Sodexo's healthcare division manages facilities and food services in hospitals around the world.

Michel Landel, Sodexo CEO, said: “This is in line with our strategy to consolidate Sodexo’s position in high-potential emerging economies.”

The current chair and CEO of Puras do Brasil, Hermes Gazzola, will be named non-executive chair of the board of Sodexo’s enlarged onsite service activities in Brazil and will help management continue to develop the business in Brazil, according to a Sodexo release announcing the deal.

Financing of this transaction represents less than one year of Sodexo’s consolidated operating cash flows.