Sodexo has signed an agreement to acquire Centerplate for the sum of $675 million from Olympus Partners, placing the business as a leading player in Sports & Leisure globally, as it more than doubles its footprint.
Tracing its roots to 1929, Centerplate is a provider of food and beverage, merchandise and hospitality services at sports facilities, convention centres and entertainment facilities in the United States, the United Kingdom, Canada and Spain.
With executive offices in Stamford, Connecticut, Centerplate, is ranked the fourth largest operator by revenues in the United States Sports & Leisure market, the largest market globally. The business serves stadiums and arenas, annually hosting more than 116 million guests across its portfolio of premier venues for marquee events, including 14 Super Bowls, 36 U.S. 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 last twelve month revenues to June 2017 were $998 million. For reference, Sodexo’s Fiscal Year 2016 revenues for the Sports & Leisure segment were €903 million.
According to Sodexo, the acquisition will “substantially strengthen” its position in the North American market, and brings the Group’s Sports & Leisure business to scale in the region. In the UK, the acquisition supports Sodexo’s strategy to grow its stadia and cultural destination portfolio.
Chris Verros, CEO of Centerplate, will lead the new combined business in the United States. Centerplate’s European operations will be integrated into Sodexo’s existing Sports & Leisure business in the region.
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. We look forward to working together with Centerplate to bring exceptional Quality of Life experiences to tens of thousands of fans and spectators around the world.”
Chris Verros, Centerplate CEO added: “With Sodexo, we share the same vision to deliver a unique and memorable service for our clients and guests through our tailored food and beverage programs, unique hospitality design, rewarding event and retail services. Centerplate’s clients will benefit from Sodexo’s global capabilities, solution innovations, other on site services and geographic reach.”
The acquisition is subject to customary regulatory approvals and is expected to be closed by end-2017.