RCS - Compass Group PLC - Proposed acquisition of CH&CO

CompassAnnouncement

22/01/2024 07:45

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RNS Number : 3738A  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 £475m/$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.
£450m/$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 £475m/$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

 Investors  Agatha Donnelly, Helen Javanshiri, Simon 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 (http://www.compass-group.com)

 

 

Notes: (1) Based on exchange rate of $1.27 as of 19(th) January 2024

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