By Denis Sheehan FIH: Compass lining up £400 million move to acquire CH&CO.
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The acquisition team at catering giant Compass Group are at work this weekend aiming to put the finishing touches on the acquisition of CH&CO.
Earlier today Sky News reported the deal was in progress stating that advanced talks are underway to acquire CH&CO further cementing Compass’s market share of the premium contract catering market.
CH&CO is a firm market leader in premium contract catering having held a royal warrant since 2013, its client portfolio includes Buckingham Palace, Kensington Palace, Tower of London, Hampton Court Palace, Royal Academy of Arts, and the Old Royal Naval College.
CH&CO has enjoyed the backing of private equity firm Equistone since 2019, a valuation of circa £400 million would deliver an impressive exit premium for Equistone. Equistone are understood to be being advised through the final stages by the mergers and acquisitions team at Rothschild & Co.
Last Friday, shares in Compass Group closed at 2170p, up 14% during the last 12 months, so the deal is likely to be welcomed by The City.
As we publish, we have not received replies from requests for comment from either Compass or CH&CO, but as soon as we do, we will update readers.
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