Compass Group to buy Fazer Food Services
UK-based global catering giant Compass Group is looking to extend its hold on the North European market with a Nordic acquisition. The company it’s agreed to buy, Fazer Food Services, comes with a 475 million euro price tag – but it will expand Compass’s hold considerably in the region. The smaller company runs 1,000 catering facilities in Finland, Sweden, Norway, and Denmark, and reported revenues of 600 million euros last year.
Compass Group’s share price has appreciated by 16% year to date
Source: Yahoo Finance
The Nordic caterer is no small fish in its comparatively big pond – but it still pales in comparison to the company that’s buying it. Compass Group serves an estimated 5.5 billion meals every year in 45 different countries. And where Fazer has 7,000 employees, Compass has more than 600,000. Fittingly, the much larger business has much larger revenues, coming in at £23 billion last year. That revenue was drawn from a collection of diverse locations including Heathrow airport, Chelsea football club, and the US Senate.
Compass Group’s CEO, Dominic Blakemore, made the following statement over the acquisition to reporters: “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.”
Dominion holds Compass Group in its Global Trends Managed Fund.
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