Compass: Catering giant buys Vermaat Groep in £1.3bn deal
Compass has agreed to acquire European food services business Vermaat Groep for €1.5bn (£1.3bn).
Shares in the hospitality giant rose by more than five per cent in early trades.
Vermaat, which is a market leader in the Netherlands, will give Compass a “unique opportunity” for sustainable growth in Europe, the catering company told markets this morning.
Dominic Blakemore, Compass CEO, said that Vermaat was a “best in class” business and will “significantly strengthen” Compass’s premium offer across Europe.
“This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe,” Blakemore said.
Compass expects the acquisition to be boost its margin and earnings per share in the full year of ownership.
Rick Zeelen, CEO of Vermaat, said: “Compass and Vermaat are highly complementary businesses with similar cultures and priorities. The leadership team remains fully committed to executing its European growth strategy.
“Together, subject to regulatory approval, we will be able to provide clients with an even more compelling proposition in a highly attractive growth market, accelerating our premium offering in Europe.”
Vermaat is on track to generate sales of €700m (£519m) with a double-digit operating margin in 2025.
Compass upgrades expected earnings
The catering giant also upgraded its expected earnings for 2025 after its North American arm grew faster than expected.
The FTSE 100 firm now expects underlying operating profit growth to be 11 per cent, driven by organic revenue growth above eight per cent, it said.
Chris Beauchamp, Chief Market Analyst at IG, said: “Compass shares have reacted enthusiastically to this morning’s update, and the share price looks primed for more gains as it returns to its steady ascent following the volatility of March and April.
“The upgraded profit forecast shows that it is gaining pricing power and market share, pointing towards the potential for more profit upgrades in the months to come.”
Revenue growth was 8.6 per cent in the third quarter of 2025, while growth in the year to date so far has been 8.5 per cent.
Sales in North America outpaced the international business, with 9.6 per cent growth in the third quarter and nine per cent growth in the year to date.
North American revenue was “particularly strong” as it benefited from “favourable hospitality events”, Compass said.
Net new business growth was at four to five per cent, the company added, with 96 per cent client retention.