Compass: Global catering group seals deal to buy Vermaat
Global catering group Compass has struck its biggest ever deal after agreeing to buy a European upmarket food firm for around 1.5 billion euros (£1.3 billion).
Compass – which provides food services to millions of people every day, including in schools and universities, businesses and for events – is buying Vermaat, which is expected to make sales of around 700 million euros (£608 million) this year.
Vermaat, which has its headquarters in the Netherlands, offers premium food services in offices, healthcare sites and venues, such as museums and art galleries, in the Netherlands, France and Germany.
The deal was unveiled as Compass, which is the world’s biggest catering group, also upped its annual outlook, with expectations now for underlying earnings to grow by “towards” 11%, up from an earlier forecast for a high single-digit increase, driven by sales growth of more than 8%, not including the boost from acquisitions.
Shares in Compass lifted 5% in midday trading on Tuesday.
Dominic Blakemore, group chief executive of Compass, said the takeover of Vermaat was a “landmark acquisition”.
He said: “Vermaat is a best-in-class food services business which will significantly strengthen Compass Group’s premium offer across Europe and will provide us with exceptional leadership talent.
“This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe.”