French food services and facilities management company Sodexo is reportedly exploring a potential purchase of its U.S.-based rival Aramark ARMK. The Philadelphia-based food service company’s shares surged more than 10% in after-hours trading following the acquisition report.
What Happened: The talks of acquisition by Sodexo have been ongoing in recent months. However, Sodexo would need to secure funds for such a significant transaction. Bloomberg reported on Thursday, citing people familiar with the matter.
Aramark is valued at $9.8 billion after its shares surged 33% on the New York Stock Exchange this year. Meanwhile, Sodexo has a market value of $13 billion. The potential deal might face antitrust scrutiny, according to the report.
Sodexo and Aramark did not immediately respond to Benzinga's request for comment.
Why It Matters: In 1997 the French food services and facilities management company merged its North American operations with Marriott International Inc.'s food services and facilities management business. Sodexo now has 430,000 employees across 45 countries, according to its website.
Price Action: Aramark shares last traded at $37.26 on Wednesday. In after-hours trading, the stock surged 10.01% following the acquisition report. The stock has surged 33.36% this year, according to data from Benzinga Pro.
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