Ftse 100 catering business Compass said today it had agreed to buy food business Fazer Group in a €475m (£422m) deal.
Fazer Food Services has operations in Finland, Sweden, Norway and Denmark across several sectors including business, industry, education, healthcare and defence.
Compass said the acquisition will “further strengthen Compass Group’s existing offer, and will enable Compass to create more compelling and innovative solutions for its clients and consumers”.
Compass said the two companies “share a clear focus on high quality food, outstanding customer service, and a commitment to sustainability”.
The company said the deal is expected to achieve its criteria of returns greater than the cost of capital by the end of year two.
Compass chief executive Dominic Blakemore said: “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.”
Christoph Vitzthum, president and chief executive of Fazer, said: “We believe Compass will provide a great home for Fazer Food Services. It is a leading food services business with a global reach and a strong purpose.
“Our two companies share similar values with a clear focus on food, outstanding customer service and a commitment to people. Whilst we are sad to see many of our colleagues leave Fazer Group to join Compass, we believe this acquisition will allow Fazer Food Services to achieve its full potential.”
Shares in Compass fell nearly one per cent this morning to 1,843p.