Compass Group PLC announces proposed acquisition of CH&CO

Compass Group PLC, a leading global foodservice company, announced it has signed an agreement to acquire CH&CO, a provider of premium contract and hospitality services in the U.K. and Ireland for an initial enterprise value of 475 million pounds ($600 million).

CH&CO has 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 450 million pounds ($570 million) and operates across a range of sectors, including business and industry, sports and 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 U.K. and Ireland.  

Dominic Blakemore, Group CEO of Compass Group PLC, said in the announcement: “CH&CO is a highly regarded foodservice 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 capitalize 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 in the announcement: “We’re delighted that Compass wants to acquire CH&CO. The prospect of joining a leading global provider of foodservices 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."