Compass Group Advances with Strategic £800m M&A
Deal News | Feb 06, 2025 | EIN
Compass Group, a prominent catering company, has reported a significant organic revenue increase of 9.2% over the last quarter. This growth was achieved with notable contributions from all regional divisions, with North America seeing an increase of 9.7%, Europe 8.4%, and the rest of the world 7.9%. The company disclosed a major investment in mergers and acquisitions worth $1 billion (£800 million) in the quarter, including acquiring Dupont Restauration in France and 4Service in Norway. Compass also announced a future reshaping of its regional divisions, merging its 'rest of the world' division with European operations. Despite growth, the company cautioned about potential adverse effects from foreign exchange rates. Share prices have notably increased by 28% over the past year, and the company's future guidance suggests continued growth and profitability.
Sectors
- Catering and Food Services
- Mergers and Acquisitions
Geography
- United Kingdom – Compass Group is a UK-based company listed on the FTSE 100, indicating its prominence in the British market.
- North America – The article reports significant organic growth in Compass's North American operations, making this a key region of interest.
- Europe – Compass reported considerable revenue growth in Europe and has merged its 'rest of the world' operations with its European division.
- France – France is significant as one of the countries where Compass Group has acquired a company (Dupont Restauration).
- Norway – Norway is notable for Compass Group's acquisition of the company 4Service.
Industry
- Catering and Food Services – Compass Group operates in the Catering and Food Services sector, offering food and support services across various regions.
- Mergers and Acquisitions – The article discusses Compass Group's significant investment in mergers and acquisitions, highlighting their strategic growth initiatives.
Financials
- £800m – The total investment made by Compass Group in mergers and acquisitions during the reported quarter.
- 28% – The increase in Compass Group's share price over the past year.
- 9.2% – The reported organic revenue growth by Compass Group in the last quarter.
- £447m – Potential revenue impact due to adverse foreign exchange translation rates.
- £29m – Potential operating profit impact due to adverse foreign exchange translation rates.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Compass Group | Bidding Company | Company | The primary company discussed in the article, a leading food service provider engaged in strategic M&A activities. |
| Dupont Restauration | Target Company | Company | A catering company based in France acquired by Compass Group. |
| 4Service | Target Company | Company | A company based in Norway acquired by Compass Group. |
| CH&Co | Target Company | Company | A hospitality company previously planned for acquisition by Compass Group. |