Sodexo transfers contracts to Compass Group in energy and resources shift

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Sodexo Group Australia and Compass Group Australia have signed an agreement to transfer Sodexo’s aged care, education and some corporate contracts to Compass.

The contracts represent $68 million in the 2021 fiscal year.

Sodexo plans to focus its efforts in the region on energy and resources, to continue to build its integrated facilities management and catering services for Australia’s mining sector.

The move 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.

The two groups will engage with clients and employees impacted by the transfer to ensure a seamless transition. Sodexo employees working under contracts transitioning as part of the agreement will be offered employment with Compass Group Australia.

The change in ownership is expected to be finalised in December.

Darren Hedley, Sodexo Australia country president and APAC CEO for energy and resources, says the deal confirms the company’s confidence in the region. “This deal allows Sodexo to focus on its core businesses in Australia, which will ensure solid, profitable and responsible growth in the long term.

“The decision to focus on our energy and 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,” he says.

Shelley Roberts, managing director at Compass Group Australia, is equally enthusiastic. “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.”

Roberts says Compass has been investing in a number of new value offers across the sectors, which will be made available to new clients over the coming months.

Photo by Romain Dancre on Unsplash

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