Compass unveils £475m swoop on rival CH&CO
Global catering group Compass is to acquire CH&CO, a provider of contract and hospitality services in the UK and Ireland for an initial enterprise value of £475 million.
CH&CO currently generates annual revenues of c. £450m and operates across a range of sectors, including business, sports, education and healthcare.
It counts Kew Gardens, the Southbank Centre, the Royal Opera House and the Royal Academy of Arts among its clients.
Dominic Blakemore, Group CEO of Compass Group, said: “CH&CO is a highly regarded food service business in our industry.
“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.”
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.”
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.”