Bain Capital, LP is looking to bid for a stake in the benefits and rewards services unit of French food caterer Sodexo S.A. (ENXTPA:SW) as the Paris-listed firm is on the lookout for investors that could help fund the group's turnaround, sources told Reuters. Sodexo, which has a market value of €12 billion ($13.7 billion), is looking to sell a minority stake of about 30% in the business which has been driving the group's post-COVID recovery by providing employee benefit programmes as well as meal vouchers and gift cards, one of the sources said, speaking on condition of anonymity. An auction process is due to start this week, with other private equity firms expected to join the race, the source said.

Sodexo's benefits unit delivered a 7% jump in organic revenues in its latest quarterly results. Its valuation could exceed €2 billion, based on core earnings of about €200 million, the source said. A spokesperson for Sodexo said the company would keep majority control of the benefits and rewards business, adding “in this context we are currently studying various strategic options.” The spokesman also ruled out plans for an initial public offering (IPO).

Bain was not immediately available to comment.