Compass Group to acquire CH&CO for £475m
CH&CO currently generates annual revenues of roughly £450m and operates across a range of sectors
Global food service company Compass Group has signed an agreement to acquire CH&CO, a contract and hospitality services company that operates in the UK and Ireland, for an initial enterprise value of £475m.
Plans of acquiring CH&CO comes as the company is a “highly regarded” management team and a track record of strong performance, delivering a “bespoke and high-quality” food offer through several sector brands.
CH&CO currently generates annual revenues of roughly £450m and operates across a range of sectors, including business and industry, sports and leisure, education, and healthcare.
According to Compass, CH&CO’s diverse client base and broad geographic spread would complement its 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.”
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.”
