Compass Group PLC (LSE: CPG), a prominent global leader in food service, announced today the signing of an agreement to acquire CH&CO, a renowned provider of premium contract and hospitality services in the UK and Ireland. The initial enterprise value for this acquisition is set at £475 million/$600 million1.
CH&CO boasts a distinguished management team and a proven track record of excellence in delivering tailored, high-quality food services under various sector brands. Currently generating annual revenues of approximately £450 million/$570 million1, the company operates across diverse sectors, including Business & Industry, Sports & Leisure, Education, and Healthcare. The acquisition aligns with Compass Group’s strategy, leveraging CH&CO’s geographic spread and diverse client base to complement its existing footprint in the UK and Ireland.
Dominic Blakemore, Group CEO of Compass Group PLC, expressed enthusiasm for the proposed acquisition, stating, “CH&CO is a highly regarded food service business in our industry. This venture combines the strengths of both companies, reflecting our shared commitment to people, excellent food, and sustainability. With CH&CO’s strong brand identity and expansive geographic reach, we anticipate enhancing our customer proposition and seizing the substantial growth potential in the market.”
Blakemore further emphasized the alignment with their long-standing strategy of creating value through disciplined capital allocation. The robust cash generation and balanced sheet of Compass Group provide flexibility for investing in organic growth and acquiring businesses with outstanding management teams, thus accelerating growth and maximizing shareholder returns.
Bill Toner, CEO of CH&CO, expressed delight at the prospect of joining Compass, a leading global food services provider. He highlighted the shared values of creativity, innovation, and a central focus on food in both organizations. Toner emphasized the potential for mutual learning and collaboration, building an even more exciting future together, contingent upon regulatory approval.
The transaction details include an initial enterprise value of £475 million/$600 million1, accompanied by an additional earn-out over the two years following closing, subject to the business’s profit growth. The completion of the proposed transaction is contingent upon regulatory approval.
