Business
Compass Group PLC to acquire Fazer Food Services
Compass Group PLC to acquire Fazer Food Services.
About this update from Compass Group Plc
[{"type":"text","content":"\n \nRNS Number : 7890B Compass Group PLC 11 June 2019 \n\n\nRNS announcement\n\n \nLegal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68\n \n \nCompass Group PLC agrees to acquire Fazer Food Services\n11 June 2019: Compass Group PLC (LSE: CPG), a leading global food service company, today announces that it has signed an agreement with Fazer Group, an international family-owned FMCG and direct to consumer group, to acquire Fazer Food Services for an enterprise value of approximately €475 million. \nFazer Food Services is a renowned food catering business in the Nordic region with operations in Finland, Sweden, Norway and Denmark, across several sectors including Business & Industry, Education, Healthcare, Seniors and Defence. \nThis is a very attractive acquisition for Compass Group which already has a presence in the region. Fazer Food Services' clear focus on food and culinary innovation will further strengthen Compass Group's existing offer, and will enable Compass to create more compelling and innovative solutions for its clients and consumers. The two companies share a clear focus on high quality food, outstanding customer service, and a commitment to sustainability. The transaction is expected to achieve the Company's acquisition criteria of returns greater than the cost of capital by the end of year two. \nDominic Blakemore, CEO of Compass Group PLC, said: \"Fazer Food Services is a highly regarded food service business in the Nordic region, and like Compass, is focused on high-quality food, culinary innovation, sustainability and great customer service. I am excited that, together with our existing colleagues in the region, we will be able to further enhance our customer proposition in the Nordic market.\"\nChristoph Vitzthum, President and CEO of Fazer Group, said: \"We believe Compass will provide a great home for Fazer Food Services. It is a leading food services business with a global reach and a strong purpose. Our two companies share similar values with a clear focus on food, outstanding customer service and a commitment to people. Whilst we are sad to see many of our colleagues leave Fazer Group to join Compass, we believe this acquisition will allow Fazer Food Services to achieve its full potential.\"\nTransaction details\nInitial cash consideration is estimated to be €42...