Sodexo Australia and Compass Group Australia sign contract transfer agreement as Sodexo focuses on Energy & Resources

Sodexo and Compass Group have signed an agreement to transfer Sodexo’s Aged Care, Education and some of its Corporate contracts in Australia, representing AUD68 million of revenue in Fiscal 2021, to Compass Group Australia. The agreement follows a comprehensive review of Sodexo’s Australian portfolio of services and is part of a global review of its portfolio to focus on segments in which it has leadership and density in a region.

Going forward, Sodexo will focus its efforts in the region on Energy & Resources to continue to build its integrated facilities management and catering services for Australia’s mining sector, while the segment will also support the Group’s key Strategic Corporate Accounts in Australia. 

Sodexo and Compass Group will be engaging with clients and employees impacted by this change to ensure a seamless transition. The change in ownership is expected to be finalised in December 2021.

All Sodexo employees working under contracts transitioning as part of the agreement will be offered employment with Compass Group Australia.

Darren Hedley, Sodexo Australia Country President and CEO Energy & Resources, APAC said: 

This deal allows Sodexo to focus on its core businesses in Australia which will ensure solid, profitable and responsible growth in the long term. We negotiated this agreement with Compass Group to ensure the best value for clients and consumers and employment for all employees working on contracts which form part of the deal. This change will see both companies continue to operate competitively in the Australian market.

“The decision to focus on our Energy & Resources segment demonstrates our long-term commitment to the Australian market. This is a sign of confidence in the Australian sector, and the future of the energy, mining, and resources sectors in this country. ”

“We are firmly convinced this step will allow us to grow sustainably in the long term and that the contracts and employees transitioning to Compass Group will have the opportunity to develop successfully under their management.”

Shelley Roberts, Managing Director of Compass Group Australia, said: 

Compass Group and its portfolio of unique operating brands are recognised as industry leaders throughout the communities we serve. Our extensive operations and experience across the Aged Care, Education and Corporate Services sectors will enable us to transition these contracts without disruption, delivering both great experiences for customers and exciting opportunities for the new colleagues joining our team.

“This deal confirms our long-term investment in Australia, including the resources sector, through a combination of organic and inorganic growth which will provide sustainable expansion for the Compass Group Australia business for many years to come.

”With consumer experience always a top priority, we have been investing in a number of exciting new value offers across these important sectors, and we look forward to discussing this extended range of services and experiences with our new clients over the coming months.”