CONTRACT caterer Compass Group has entered into a £475m takeover deal of a rival firm, which provides hospitality services for the likes of Kew Gardens and the Royal Opera House.

In an announcement, the FTSE 100-listed firm, which did catering for the London Olympics, said it would agree to buy CH&CO.

It is Compass's largest acquisition since 2019 when it picked up the Nordic caterer Fazer Food Services for €475m (£407m).

The firm has enjoyed success since the demand for socialising picked up after the pandemic, recently revealing an annual turnover just shy of £2bn.

CH&CO is headquartered in Reading and its clients comprise prominent cultural institutions, including the Royal Opera House, Kew Gardens, the Old Royal Naval College, and Historic Royal Palaces, a charity that manages Hampton Court Palace and the Tower of London.

Dominic Blakemore, group chief executive of Compass Group PLC, said: "CH&CO is a highly regarded food service 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 capitalise on the significant growth potential in the market."

Speaking on the deal, Bill Toner, chief executive of CH&CO, added: "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."

(c) 2024 City A.M., source Newspaper