The world’s largest catering organisation, Compass Group, is actively pursuing additional acquisitions across Europe, having already invested £1.7 billion in regional purchases over the past year to capitalise on growing outsourcing demand.
The FTSE 100 company, which delivers food services to workplace and educational establishments across 30 countries, has recently secured a £500 million agreement to acquire Norway’s 4Service, a specialist in catering and facility management services.
This strategic move follows the company’s £300 million acquisition of French food services provider Dupont Restauration in November, adding to earlier purchases including Germany’s Hofmanns and Britain’s CH&CO, collectively valued at £900 million.
Chief Executive Dominic Blakemore revealed to the Financial Times that the organisation remains poised for additional strategic purchases, with particular interest in food purchasing opportunities to expand their “open café” concept – unmanned office outlets offering chilled food and beverages.
The expansion strategy has already yielded impressive results, with Compass reporting a 16.4 per cent increase in underlying operating profit to £3 billion for the year ending September 30, whilst revenue climbed 10.6 per cent to reach £42.2 billion.
As part of its strategic realignment, Compass is withdrawing from several markets, including Chile and Mexico, following earlier exits from China and Brazil. This restructuring aims to concentrate resources on European acquisitions and investments, mirroring their successful North American expansion model where strategic acquisitions have led to that region now representing 70 per cent of group revenues.
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