Compass: better direction with CH&CO acquisition

(CercleFinance.com) - Contract catering group Compass Group announced on Monday that it is to acquire its British counterpart CH&CO for around £475m ($600m), in order to strengthen its presence in the UK and Ireland.


In a press release, Compass points out that CH&CO boasts a highly respected management team within the sector, as well as a solid track record in its operational performance.

The company highlights the quality of its customized offering in the fields of corporate canteens, hospitals and healthcare, sports and leisure, and education.

Compass explains that its diversified customer base, as well as its strong geographic positioning, will enable it to complement its current footprint.

CH&CO has annual sales of around £450m ($570m).

The acquisition, whose timing is subject to regulatory approval, is to be accompanied by a balance of payment ('earn out') to be paid over the next two years based on the achievement of certain results.

Even so, listed on the London Stock Exchange, Compass shares were down 0.1% on Monday morning in early trading following the announcement of this deal.


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