Sodexo becomes leading player in Sports & Leisure with the acquisition of Centerplate
Transaction highlights Centerplate: a North America and UK leading event hospitality provider Substantially strengthens Sodexo s position in North America Positions Sodexo as a leading player in S&L globally Attractive financial features: significant synergies potential, competitive valuation, EPS accretion
Key transaction terms Transaction price based on a consideration of $675m Combined entity to benefit from significant synergies (both revenues and costs) gradually ramping-up from the first year Acquisition expected to be mildly accretive to earnings from Fiscal 2018 All cash transaction financed with on-balance sheet cash and existing credit facilities Limited impact on Sodexo s leverage Deal subject to customary approvals and expected to close by end-2017
Centerplate: A leading event hospitality provider for North America and the UK Company overview Food and beverage service provider serving over 40,000 events and 100m guests annually in North America, the UK and Spain, in c.250 venues 4 th largest operator by revenues in the United States Sports & Leisure market Organized through 3 business lines: Convention Centers Sports Entertainment Joint venture with ISG to provide food and beverage hospitality services at Club Atlético de Madrid new stadium Headquartered in Stamford, Connecticut with c.30,000 employees Last twelve months revenues to June 2017: $998 million A well diversified portfolio across market segments¹ 3 Entertainment 22% UK 8% Sports 38% Best Food and Beverage 5 Years Running, Convene Magazine 4 2 North America 92% America s Best Stadium Food Travel + Leisure Magazine 1 Convention Centers 32% ¹ 2016 revenue breakdown. Recognised expertise selected awards #1 NFL Experience Stadium Journey
Centerplate: A leading provider of hospitality solutions to convention centers in North America Business description Variety of services for 40+ corporate conventions and associations, including 12 major convention centers (>350K sq. ft.) in the U.S. Cater events that range from 50 to over 16,000 attendees Customers value Centerplate s bespoke offerings, which emphasize local cuisine, provide unique experiences that encourage convention activity & attendance, and spur local economic development Serving Convention Centers in 7 of the Top 10 Meeting Destinations in North America, via CVENT Magazine Hosts of 36 official U.S. Presidential Inaugural Balls, and mega conventions for more than 100,000 attendees
Centerplate: A recognized operator in more than 40 sports facilities Business description Catering, concessions, merchandising, retail and design services to more than 40 sports venues (including professional football, baseball, basketball, hockey and collegiate sports) Wide range of events (concerts, trade shows, corporate functions, etc.) from 2,500 to 80,000 attendees Service to all non-game day private and special events at venues Hospitality provider for 14 Super Bowls, 22 World Series, multiple NBA and MLS All-Star Games, the NCAA Final Four, BCS Championship, College Football Playoff and more than 20 collegiate bowl games.
Centerplate: 125+ entertainment locations served across a wide range of markets Business description Provider of wide range of food and related services in more than 125 entertainment facilities Facilities include: Horse racing tracks Music amphitheatres Motor speedways Ski resorts Aquariums Airports Zoos
Centerplate: A major provider to sporting events, entertainment and iconic events in the UK Business description Provide services to over 50 premier venues across England and Scotland Locations served include UK football (soccer) stadiums, cricket stadiums, convention centers, and entertainment venues In addition, provider of catering and event services for some of Britain s leading visitor attractions such as national landmarks and other heritage destinations Holder of the exclusive Royal Warrant for Catering
Centerplate and Sodexo: A wide range of tailor-made solutions to better serve Sports & Leisure clients globally Combined approach to drive unique positioning in the market and strengthen client value proposition Deep consumer and operational insights Customised hospitality experiences Seamless end-to-end consumer experience Full set of self delivered services Venue sales and event management Hospitality Catering Retail food and merchandise Premium clubs and suites Soft and hard services Event planning, guest and exhibitor catering, and retail service Industry leading recognition and feedback scores Social and corporate functions from small to large-scale events Five-star dining experiences Broad range of innovative concepts Designs and operates team stores and gift shops, kiosks and customized carts Solutions for an elite clientele Superior service and extraordinary hospitality enhances customers brand Service capabilities including cleaning, reception, security, technical maintenance and energy management Capital and project management
Substantially strengthening Sodexo North America Pre-acquisition pro-forma revenue split NORAM Post-acquisition pro-forma revenue split NORAM S&L S&L B&A Healthcare B&A Healthcare Education Education 122,500 employees 150,000+ employees
A transformed Sports & Leisure segment globally Business mix Sodexo S&L Current revenues Doubling revenues Sodexo S&L revenues plus Centerplate Conference and Convention Centres 21% Airline lounges 12% Sports 28% From 12,500 to 40,000+ employees From 472 to 700+ sites operated Cultural destinations 39%
Sodexo Sports & Leisure Many leading venues around the world Atlanta Zoo Michigan State University (Winter Classic Hockey Match) Hollywood Bowl Shedd Aquarium (Chicago)
Sodexo Sports & Leisure Stadia and arenas Hippodrome de Vincennes Paris Orange Velodrome de Marseille American Express Community Stadium Brighton Newcastle United Football Club
Sodexo Sports & Leisure Annual events Henley Royal Regatta Roland Garros Tour de France Chelsea Flower Show Royal Ascot
Sodexo Sports & Leisure Cultural destinations Petit Palais Paris National Gallery London Imperial War Museum London Seine Musicale Paris Royal Academy of Arts Thermes Ardeches Museum of modern and contemporary arts - Strasbourg Eiffel Tower Paris
Sodexo Sports & Leisure Venue sales at prestigious sites Salons de l hotel des Arts et Metiers Maison des Polytechniciens Dundas Castle #Cloud Business Center
Sodexo Sports & Leisure Airline lounges Virgin Atlantic Virgin Atlantic United Airlines United Airlines
Sodexo Sports & Leisure Tourism Le Lido de Paris Bateaux Parisiens Batobus Les restaurants de la Tour Eiffel
Sodexo s new Sports & Leisure business Proud to Serve: Sports, Convention & Conference Centers, Cultural Destinations, and Airline Lounges 40,000+ Employees 3+ Regions 59+ Convention Centers 139 Sports Facilities/Arenas 23 Performing Arts Centers 700+ Sites 1.7bn Revenues Proforma 160 Airline Lounges 94 Zoos, Fairgrounds & Attractions 200M+ Guests Served Annually Significant presence in Stadia & Arenas Convention Centers Cultural Destinations Tourist Attractions Airline Lounges Performing Arts 7 Airports 13 Racetracks 12 Ski Resorts Services We Deliver: Fan/Guest Casual Dining Athlete/ Employee Dining Travel Program Catering and Hospitality Concessions Ticketing and Hospitality Packages Accommodation Program 19