Latest news with #Vermaat
The Independent
21 hours ago
- Business
- The Independent
Compass takes further slice of European catering market with £1.3bn takeover
Global catering group Compass has struck its biggest ever deal after agreeing to buy a European upmarket food firm for around 1.5 billion euros (£1.3 billion). Compass – which provides food services to millions of people every day, including in schools and universities, businesses and for events – is buying Vermaat, which is expected to make sales of around 700 million euros (£608 million) this year. Vermaat, which has its headquarters in the Netherlands, offers premium food services in offices, healthcare sites and venues, such as museums and art galleries, in the Netherlands, France and Germany. The deal was unveiled as Compass, which is the world's biggest catering group, also upped its annual outlook, with expectations now for underlying earnings to grow by 'towards' 11%, up from an earlier forecast for a high single-digit increase, driven by sales growth of more than 8%, not including the boost from acquisitions. Shares in Compass lifted 5% in midday trading on Tuesday. Dominic Blakemore, group chief executive of Compass, said the takeover of Vermaat was a 'landmark acquisition'. He said: 'Vermaat is a best-in-class food services business which will significantly strengthen Compass Group's premium offer across Europe and will provide us with exceptional leadership talent. 'This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe.' Compass hopes the deal will help it take a further slice of the food services business across Europe, which is estimated to be worth at least 115 billion euros (£99.8 billion). Vermaat serves more than 200,000 people with food every day across more than 700 locations. The latest trading update from Compass also showed that revenues rose 8.6% in its third quarter to the end of June.
Mint
a day ago
- Business
- Mint
UK equities mixed as investors assess corporate earnings, await key data
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) FTSE 100 unchanged, FTSE 250 down 0.4% UK approves Sizewell C nuclear plant Compass raises profit forecast, buys Vermaat in $1.8 bln deal July 22 (Reuters) - London's main stock indexes were mixed on Tuesday as investors parsed a spate of corporate earnings, and awaited the release of key economic data this week. The benchmark FTSE 100 was flat by 0944 GMT, after registering a record closing high on Monday. The domestically oriented midcap FTSE 250 lost 0.4%. Industrial miners rose 1.1%, tracking a rise in copper prices, buoyed by hopes for firmer Chinese demand. Glencore gained 2.2%, while Rio Tinto rose 1.1%. Homebuilders and household goods stocks led sectoral losses, falling 1.6%. Vistry down 2.7%. Data showed Britain borrowed more than expected in June as a jump in inflation pushed up the government's debt costs. In company news, British food catering firm Compass Group rose 6.1% to the top of the blue-chip index, after it agreed to buy European premium food services business Vermaat Groep for about 1.5 billion euros ($1.75 billion), including debt and also raised its annual profit forecast. Energy firm Centrica surged 3.9% after Britain approved the 38 billion pound ($51 billion) Sizewell C nuclear plant in eastern England. The company holds a 15% stake in the project. Greencore jumped 10.5%, to top the FTSE mid-cap index, after the convenience food manufacturer raised its annual profit expectations. Kier Group fell 5.1%, to the bottom of the mid-cap index, after the British infrastructure and construction group said that its CEO Andrew Davies would be stepping down, and named insider Stuart Togwell as his successor, effective November 1, 2025. Meanwhile, AstraZeneca on Monday said it plans to invest $50 billion in the U.S. to expand manufacturing and research capabilities as it reacts to White House trade policy. On the radar this week are UK flash Purchasing Managers' Index for July and June retail sales data. (Reporting by Sukriti Gupta; Editing by Shinjini Ganguli)
Daily Mail
a day ago
- Business
- Daily Mail
Compass shares soar as caterer lifts guidance and reveals record takeover
Compass Group revealed another major acquisition on Tuesday as the catering giant's trading performance continues to surpass expectations. The €1.5billion (£1.3billion) takeover of Dutch foodservice operator Vermaat, Compass's largest ever deal, is part of the group's plans for European expansion after decades of acquisition-led growth in North America. Compass, which caters to staff and students at Microsoft, Shell and Harvard Business School, has been ramping up M&A activity since its Covid-era slump. The firm, which lifted annual guidance on Tuesday after better-than-forecast growth in its third quarter, said Vermaat offers the group a 'unique opportunity for further sustainable growth in Europe' Vermaat, a market leader in the Netherlands with a growing presence in Germany and France, has delivered a compound annual growth rate of nearly 20 per cent over the last 15 years, and is on track to generate sales of €700million in 2025. Compass boss Dominic Blakemore said: 'This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe.' It came as Compass raised its annual profit forecast after reporting revenue growth of 8.6 per cent for the three months to the end of June. International sales rose 6.6 per cent during the quarter while its largest market, the US, grew by 9.6 per cent. Compass Group shares led the FTSE 100 on Tuesday, adding 5 per cent to 2,651p by midmorning. They have now added more than 20 per cent over the last 12 months and around 130 per cent over the last five years. Adam Vettese, market analyst at eToro, said: The company's combination of robust underlying growth and successful recent acquisitions demonstrates strategic discipline and supports Compass as a leader in outsourced catering. 'However, the sizeable €1.5 billion price tag for Vermaat means the balance sheet leverage will tick higher, adding some financial risk and making integration a key focus in the months ahead. 'Overall, with resilient industry trends and a strong track record of delivering on M&A, Compass is well placed to capture further market share. 'But with a more ambitious acquisition strategy, some caution is warranted around execution and debt, particularly as its current valuation leaves little room for indigestion.'
