Global catering giant Compass Group has struck an agreement to buy rival CH&CO for an initial enterprise value of £475m to support the growth of its business in the UK and Ireland.
CH&CO operates across a range of sectors, including business & industry, sports & leisure, education, and healthcare, generating annual revenues of around £450m. It has more than 900 clients across 1,000 locations in UK and Ireland, whilst Compass is the world’s largest catering group, with operations in more than 30 countries.
Dominic Blakemore, CEO of the Compass Group, commented: “With CH&CO’s strong brand identity and a broad geographic reach, we would be able to further enhance our customer proposition, helping us capitalise on the significant growth potential in the market”.
Bill Toner, CEO of CH&CO, added: “The prospect of joining a leading global provider of food services offers huge potential for us and our clients. Creativity and innovation are skills that we share with Compass, and food is at the heart of everything we do.
“Both businesses have strong and complementary brands, and subject to regulatory approval, there is a great opportunity for us to learn from each other and to build an even more exciting future together.”
NAM Implications:
- Consolidation via takeover…
- …a feature of the New Norm.
- Bringing increased scale economies…
- …and cross-fertilisation across the combined business.
- Time to reclassify Compass in terms of Invest, Maintain or Divest?
