UPDATE 2-Sodexo loses part of US Marine catering contract

Thu Feb 24, 2011 9:53am EST

Related Topics

* Sodexo wins eight-year deal worth $926 mln for East Coast

* Superior Services wins $764 mln deal for West Coast

* Sodexo previously held a contract for both coasts

(Recasts with U.S. Department of Defense, Sodexo comments)

By Dominique Vidalon

PARIS, Feb 24 (Reuters) - France's Sodexo (EXHO.PA) has lost part of a contract to provide catering for the U.S. Marine Corps, according to a list of contract awards published by the U.S. Department of Defense.

The U.S. award ends months of suspense over the outcome of a competition to renew the contract, previously held by Sodexo, which was worth about $1.2 billion.

Sodexo, the world's second-biggest catering services company after Britain's Compass Group (CPG.L), earlier said it had won a $926 million deal to provide catering at 31 Marine Corps garrison mess halls on the the U.S. East Coast.

A U.S. firm -- Superior Services of Fresno, California -- has won a second contract for $764 million to serve 20 Marine Corps garrisons halls on the U.S West Coast, according to the U.S. list of contract awards.

Sodexo had originally held a global contract which covered both the U.S. West and East coasts.

But the company faced some negative publicity when the U.S. Service Employees International Union (SEIU) accused the French group of union bashing and poor working conditions. [ID:nLDE6AL16I]

A Sodexo spokeswoman said the value of the group's previous contract with the U.S. Marines was $150 million per year over eight years or $1.2 billion.

Sodexo, which has a market value of 7.7 billion euros ($10.59 billion), manages canteens and facilities for office workers, armed forces, schools and prisons, and provides vouchers for meals and gifts.

By 1334 GMT, Sodexo shares were up 0.16 percent 49.21 euros ($1=.7270 Euro)

(Reporting by Dominique Vidalon; Editing by James Regan and Jane Merriman) ((dominique.vidalon.reuters.com; +33 1 49495432; Reuters Messaging:dominique.vidalon.reuters.com@reuters.net))

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