11th Jun 2019 08:16
LONDON (Alliance News) - Compass Group PLC on Tuesday said it has agreed to acquire Fazer Food Services for an enterprise value of EUR475 million.
Fazer Group is a Finnish food company that produces bakery, confectionery, biscuit and grain products, plant-based meals, and non-dairy products.
Over the twelve-month period to the end of April, Fazer generated earnings before interest, taxes, depreciation, and amortization of EUR39.8 million on revenue of EUR593.0 million.
Initial cash consideration is estimated to be EUR420 million with the remaining deferred consideration payable within seven years. The transaction will be financed using cash and existing credit facilities, Compass said.
The FTSE 100 catering company said Fazer's clear focus on food and culinary innovation will further strengthen its existing offer.
"Fazer Food Services is a highly regarded food service business in the Nordic region, and like Compass, is focused on high-quality food, culinary innovation, sustainability and great customer service. I am excited that, together with our existing colleagues in the region, we will be able to further enhance our customer proposition in the Nordic market," said Compass Chief Executive Dominic Blakemore.
"Whilst we are sad to see many of our colleagues leave Fazer Group to join Compass, we believe this acquisition will allow Fazer Food Services to achieve its full potential," added Fazer President & CEO Christoph Vitzthum.
Compass shares were trading 0.4% higher early on Tuesday at 1,865.50 pence each.
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