France-based global food services company Sodexo has taken over India's largest food service player Radhakrishna Hospitality Services in a deal worth more than Rs 400 crore.
The new entity would function under Sodexo's ownership although Radhakrishna Hospitality Services (RKHS) Promoter Raju Shetty would take over as the non-executive chairman of the combined entity, a source close to the development said.
"Sodexo has made a complete buyout of RKHS for a sum worth over Rs 400 crore. RKHS was already the number one player in the Indian food services market and the joint entity would now have a clear edge over all rivals besides providing RKHS an opportunity to re-enter the international market where it earlier used to operate," the source said.
The deal was brokered by Delhi-based BMR Advisors who acted as the sole transaction advisors.
The $13.6-billion Sodexo has been present in the Indian market for some years, the source added.
However, the deal does not include Radhakrishna Hospitality's other businesses including its retail arm and logistics and supply chain.
Neither of the two companies could be contacted for their comment.