Latest news with #catering
The Independent
13 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.
Daily Mail
15 hours 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.'
Wall Street Journal
17 hours ago
- Business
- Wall Street Journal
Compass Group to Buy Dutch Caterer Vermaat; Raises Guidance
Compass Group CPG 0.40%increase; green up pointing triangle said it agreed to buy Dutch food services company Vermaat Groep for around 1.5 billion euros ($1.75 billion) including debt, and lifted its guidance for the fiscal year. The U.K. catering contractor on Tuesday said Vermaat is on track to generate sales of around 700 million euros in 2025, with a double-digit operating margin.
Reuters
18 hours ago
- Business
- Reuters
Caterer Compass raises profit forecast, buys Vermaat in $1.8 billion deal
July 22 (Reuters) - British food catering firm Compass Group (CPG.L), opens new tab raised its annual profit forecast on Tuesday, boosted by acquisitions and a strong third quarter. The world's largest catering group also agreed to buy European premium food services business Vermaat Groep for about 1.5 billion euros ($1.75 billion) including debt. ($1 = 0.8558 euros)
Bloomberg
18 hours ago
- Business
- Bloomberg
Bridgepoint Said to Sell Vermaat to Compass in €1.5 Billion Deal
Bridgepoint Group Plc is selling a majority stake in Vermaat Groep BV to Compass Group Plc in a transaction that values the Dutch caterer at about €1.5 billion ($1.8 billion), according to people familiar with the matter. Bridgepoint will fully exit its holding through the deal, the people said, who asked not to be identified as the information is private.
