Compass Group PLC Proposed acquisition of CH&CO
22 Janeiro 2024 - 4:30AM
RNS Non-Regulatory
TIDMCPG
Compass Group PLC
22 January 2024
Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68
Compass Group PLC announces proposed acquisition of
CH&CO
22 January 2024: Compass Group PLC (LSE: CPG), a leading global
food service company, has today signed an agreement to acquire
CH&CO, a provider of premium contract and hospitality services
in the UK and Ireland for an initial enterprise value of
GBP475m/$600m(1) .
CH&CO has a highly regarded management team and a long track
record of strong performance delivering a bespoke and high-quality
food offer through several sector brands . The company currently
generates annual revenues of c. GBP450m/$570m(1) and operates
across a range of sectors, including Business & Industry,
Sports & Leisure, Education, and Healthcare. CH&CO has a
diverse client base and broad geographic spread which would
complement Compass Group's existing footprint in the UK and
Ireland.
Dominic Blakemore, Group CEO of Compass Group PLC, said :
"CH&CO is a highly regarded food service business in our
industry. This proposed acquisition combines the best of the two
companies: our shared passion for people, great food, and focus on
sustainability. 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."
"The proposed acquisition is in line with our longstanding
strategy to create value through disciplined capital allocation.
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 :
"We're delighted that Compass wants to acquire CH&CO. 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."
Transaction details
Initial enterprise value is GBP475m/$600m(1) with an additional
earn out over the two years following closing, dependent on the
profit growth of the business. Completion of the proposed
transaction is subject to regulatory approval.
Enquiries
Agatha Donnelly, Helen Javanshiri, Simon
Investors Bielecki +44 1932 573 000
Press Giles Robinson (Compass) +44 1932 963 486
Tim Danaher (Brunswick) +44 207 404 5959
Website www.compass-group.com
Notes: (1) Based on exchange rate of $1.27 as of 19(th) January
2024
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January 22, 2024 02:30 ET (07:30 GMT)
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