Sodexho, multinational food service major, has bought a majority stake in Radhakrishna Hospitality Services for Rs 4 billion.

The company is likely to make an official declaration about the contract later in the day.

Radhakrishna Hospitality is the only organized player in Indian food service space.

In 2008, the company bought the equity stake possessed by Compass, a US-based food service firm, in a joint venture and is involved in launching its international catering services.

The company had earlier tried to incorporate financial investors but couldn't do so because of problems with prospective investors over pricing.

The company top officials said, “Radhakrishna hospitality was very strong in the international markets during 1989-99. We want to re-enter the international markets and scale up the intrinsic value offered by our brand in the global arena.”

The recent contract is only for Radhakrishna Hospitality's core business of food catering. The discussions, however, don't comprise the other businesses that include supply chain and retail businesses that are under RK Foodland.

Radhakrishna Hospitality has been in discussions with potential suitors for some time now.