By Pamela Barbaglia and Gwénaëlle Barzic

LONDON (Reuters), – Bain Capital has announced that it is interested in bidding for a stake at Sodexo’s rewards and benefits services division (PA:). Sources tell Reuters that the Paris-listed company is searching for investors to help finance the turnaround.

Sodexo’s market value is 12 billion euro ($13.7 billion). A minority stake, or about 30%, in Sodexo would be sold. The business, which was instrumental in the post-COVID recovery through employee benefit programs, as well as gift vouchers and meal vouchers, is being offered for sale by one source, who spoke on condition of anonymity.

According to a source, an auction will begin this week. Other private equity companies are expected to participate in the race.

Sodexo’s benefits unit saw a 7 percent increase in organic revenue in the most recent quarter. Based on core earnings around 200million euros, its valuation could rise to 2 billion Euros, according to a source.

Sodexo spokesperson said that the company will retain majority control over the rewards and benefits business. He added, “In this context, we are currently reviewing various strategic options.”

A spokesperson also denied plans to launch an initial public offer (IPO).

Bain wasn’t immediately available for comment.

Sodexo is one of the most important catering businesses in the world alongside Compass. To stay afloat, they had to lay off employees and stop paying dividends.

Unlike restaurants, caterers like Sodexo – which serves businesses, government agencies, hospitals, schools and event organisers – don’t have a direct relationship with consumers and have been unable to focus on home deliveries during lockdowns.

Sodexo was founded by Pierre Bellon in 1966 and warned that a long return to remote work caused by Omicron would impact its revenues.

Bellon’s family holds 42.8% of the company. They have given their approval to the sale of the benefits section, which includes fuel cards, incentive programs, and sports passes.

($1 = 0.8770 euros)