22nd Jan 2024 08:20
(Alliance News) - Compass Group PLC on Monday said it has agreed to buy CH&CO Catering Group Ltd for an initial enterprise value of GBP475 million, saying the provider of contract and hospitality services will complement its own footprint in the UK and Ireland.
CH&CO is based in Reading, Berkshire, while Compass itself is based in Chertsey, Surrey.
Compass will pay an additional earn out, which it didn't specify, depending on the profit growth of CH&CO over the next two years.
CH&CO has annual revenue of about GBP450 million and operates in sectors including business & industry, sports & leisure, education, and healthcare.
"CH&CO is a highly regarded food service business in our industry," said Compass Chief Executive Officer Dominic Blakemore.
He added: "Our strong cash generation and balance sheet give us the flexibility to invest in organic growth and to acquire high quality businesses with exceptional management teams, enabling us to further accelerate growth and enhance shareholder returns."
Compass shares were marginally lower at 2,168.00 pence early Monday in London. The company has a market capitalisation of GBP37.02 billion.
By Tom Waite, Alliance News editor
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