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.
