Global event manager and catering company Sodexo has signed an agreement to acquire Centerplate, Inc. a hospitality services provider specialising in sports facilities, convention centres and entertainment facilities in the United States, but with operations also in the UK, Canada and Spain.
Sodexo paid US$675m to Centerplate owner Olympus Partners for the business.
Stamford, Connecticut-based Centerplate is the fourth largest operator by revenues in the US Sports & Leisure market, annually hosting more than 116m guests across its portfolio of venues for marquee events, including 14 Super Bowls, 36 US Presidential Inaugural Balls, All-Star and Championship games for professional football, baseball, basketball, hockey, soccer, collegiate athletics, and many of North America’s largest conventions.
Centerplate’s 12-month revenues to June 2017 were $998m, just ahead of Sodexo’s fiscal year 2016 revenues for the Sports & Leisure segment of €903m.
This acquisition will strengthen Sodexo’s position in the North American market.
The companies expect the acquisition “to be mildly accretive to earnings from Fiscal 2018”.
Chris Verros, CEO of Centerplate, will lead the new combined business in the US, while Centerplate’s European operations will be integrated into Sodexo’s existing Sports & Leisure business in the region.
The acquisition is subject to customary regulatory approvals and is expected to be closed by end-2017.
Pierre Henry, vice-president of the Group Executive Committee and CEO Sports & Leisure Worldwide for Sodexo, said: “This acquisition is another step in our long-term strategy to become a leading player in every market in which we are present. Centerplate is an ideal partner with highly professional, dedicated teams who bring a wealth of industry expertise.”
Chris Verros, Centerplate CEO said Centerplate’s clients would benefit from Sodexo’s “global capabilities, solution innovations, other on site services and geographic reach”.