Fazer Food Services is a renowned food catering business in the Nordic region with operations in Finland, Sweden, Norway and Denmark, across several sectors including Business & Industry, Education, Healthcare, Seniors and Defence.
This is a very attractive acquisition for Compass Group which already has a presence in the region. Fazer Food Services’ clear focus on food and culinary innovation will further strengthen Compass Group’s existing offer, and will enable Compass to create more compelling and innovative solutions for its clients and consumers. The two companies share a clear focus on high quality food, outstanding customer service, and a commitment to sustainability. The transaction is expected to achieve the Company’s acquisition criteria of returns greater than the cost of capital by the end of year two.
Dominic Blakemore, CEO of Compass Group PLC, 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 CEO of Fazer Group, 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.”
Initial cash consideration is estimated to be €420 million with the remaining deferred consideration payable within seven years. The final consideration figures will be dependent on closing balance sheet adjustments and the operation of an earn-out. The transaction will be financed using cash and existing credit facilities.
The value of the gross assets that are the subject of the transaction as at 30 April 2019 was €289.6 million. Over the twelve-month period to April 30th 2019, the Company generated turnover of €593.0 million and EBITDA of €39.8 million.
The proposed acquisition requires EU Commission competition approval, a process which may take several months. Compass Group PLC will update the market when appropriate.