Compass Group PLC Compass Group PLC to acquire Fazer Food Services (7890B)
11 June 2019 - 4:01PM
UK Regulatory
TIDMCPG
RNS Number : 7890B
Compass Group PLC
11 June 2019
RNS announcement
Legal Entity Identifier (LEI) No. 2138008M6MH9OZ6U2T68
Compass Group PLC agrees to acquire Fazer Food Services
11 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 EUR475 million.
Fazer 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.
This 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.
Dominic 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."
Christoph 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."
Transaction details
Initial cash consideration is estimated to be EUR420 million
with the remaining deferred consideration payable within seven
years. The final consideration figures will be dependent on closing
balance sheet adjustments and the operation of an earn-out. The
transaction will be financed using cash and existing credit
facilities.
The value of the gross assets that are the subject of the
transaction as at 30 April 2019 was EUR289.6 million. Over the
twelve-month period to 30 April 2019, the Company generated
turnover of EUR593.0 million and EBITDA of EUR39.8 million.
The proposed acquisition requires EU Commission competition
approval, a process which may take several months. Compass Group
PLC will update the market when appropriate.
Kate Postans/Helen Javanshiri/Agatha
Enquiries Donnelly +44 (0) 1932 573000
+44 (0) 207 404
Media Tim Danaher/ Fiona Micallef-Eynaud 5959
Website www.compass-group.com
Notes to Editors
About Compass Group PLC
Compass Group PLC is a leading global food service company,
which generated annual revenues of GBP23.24 billion in the year to
30 September 2018. It operates in around 45 countries, employs
600,000 people and serves over 5.5 billion meals a year. The
Company specialises in providing food and a range of support
services across the core sectors of Business & Industry,
Healthcare & Seniors, Education, Sports & Leisure and
Defence, Offshore & Remote, with an established brand
portfolio.
About Fazer Food Services
Fazer Food Services is a premier food service provider in the
Nordics operating more than 1,000 restaurants, serving almost
500,000 meals daily. The Company employs approximately 7,000
employees across Finland, Sweden, Denmark and Norway and generates
a turnover of circa EUR600 million. Fazer Food Services also
operates a production kitchen in Estonia. Fazer Food Services
specialises in high quality food solutions for clients in sectors
such as Business and Industry as well as Education, Healthcare,
Seniors and Defence.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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