UK caterer Compass acquires two firms having split from Granada - Morrison Management Specialists, Selecta - Brief Article

Eurofood, Feb 13, 2001

Foodservice group Compass, having only recently completed its separation from Granada, has announced a major acquisition in the US. Morrison Management Specialists is the second largest contract caterer in the US, and Compass has agreed to pay US$563m ([euro]603m), a move which will automatically catapult Compass from the sixth to second position in the US healthcare sector.

The sudden speed of Compass announcing the acquisition has worried some investors, but chief executive at Compass, Mike Bailey, insisted that "it was too good an opportunity to miss." Compass is believed to be pursuing a target of becoming the biggest contract caterer in the world. With the group intending to sell off its Forte Hotels, such a target should become more feasible.

COMPASS TO ACQUIRE SELECTA

Compass has also said that it would buy the remaining two-thirds of the shares of Swiss firm Selecta that it does not already own. The remaining shares interesting Compass are worth around [pound]374m ([euro]585.4m), and the UK-based firm, which demerged from Granada recently, has said it will pay cash for the shares. Compass has said that Selecta's top management and chief executive This Schneider, will remain in position. The purchase offer put forward by Compass represents a premium of 33% over Selecta's average share price during the last month.