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www.thecaterer.com Compass Group to acquire CH&Co
The £475m deal will see Compass Group take on CH&Co’s entire portfolio and contracts with the Royal Opera House and Kew Gardens
By James Stagg
Compass Group has agreed to acquire rival contract caterer CH&Co in a £475m deal. The deal will further strengthen Compass’ presence in the business and industry market, which it currently oper- ates in through brands includ- ing Eurest and 14Forty. CH&Co has been a royal warrant holder since 2013 and has 10,000 employees, sup- porting over 900 clients across 1,000 locations. It was built by chief executive Bill Toner, who has worked with chairman Tim Jones through some sig- nificant mergers. CH&Co acquired Gather
& Gather from Mitie in 2019, bringing on board industry heavyweight Allister Richards. Since then, the group has taken on business and industry cater- ers such as Vacherin, which this month appointed chef and author Sabrina Gidda as culinary consultant, and Blue Apple, along with education caterer Pabulum. Once the deal completes, the intention is that CH&Co’s port- folio of companies, which also includes Royal Opera House and Kew Gardens caterer Com- pany of Cooks, will join Com- pass Group’s family of brands.
Bill Toner (left) with Allister Richards in 2019, when Gather & Gather was acquired by CH&Co Compass Group chief execu-
tive Dominic Blakemore said: “CH&Co is a highly regarded foodservice business in our industry. This proposed acqui- sition combines the best of the two companies: our shared pas- sion for people, great food and focus on sustainability. “With CH&Co’s strong brand identity and a broad geographic reach, we would be able to fur-
What could the sale mean for both companies?
Adam Griffin, director, Coverpoint Foodservice Consulting “The sale of CH&Co to a larger player has always been on the cards since the investment from private equity firm Equistone in 2019. “Having worked with both
businesses, we can see why Compass wanted to acquire CH&Co. It has a great portfolio of brands with an impressive client list and there are certainly a lot of benefits CH&Co will see as part of the larger Compass Group.
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Having said that, from a tendering perspective, a smaller operator pool is obviously never ideal. If you take the London office market as an example, Restaurant Associates and Vacherin would likely both be on a tender shortlist. Vacherin was able to continue to operate as a boutique business as part of the CH&Co Group, but time will tell as to whether it is able to retain that position going forward – we certainly hope so. “Additionally, certain clients within the CH&Co portfolio who like working with smaller, more
boutique operators, may be put off by the acquisition, so there may be a few contracts coming out to tender as their current terms come to an end.”
Julian Fris, director, facilities management consultancy firm Neller Davies “We’re in a climate of economic uncertainty and catering services are not immune [to the challenges] with changes in the working week, tightened belts and strong market competition, so it is
inevitable that not all growth can be achieved organically. “Mergers and acquisitions can
reduce choice, reduce quality and potentially drive up cost, but equally they can give more firepower for bigger and more complex contracts, particularly if there is greater collaboration between buyer and supplier to achieve best value. “It will therefore be interesting to see how Compass integrates the CH&Co contracts into its wider business and preserves the identity of its various brands.”
26 January 2024 | The Caterer | 5
ther enhance our customer proposition, helping us capi- talise on the significant growth potential in the market.” Bill Toner added: “We’re delighted that Compass wants to acquire CH&Co. The pros- pect of joining a leading global provider of food services offers huge potential for us and our clients. “Creativity and innovation
are skills that we share with Compass and food is at the heart of everything we do. “Both businesses have strong
and complementary brands, and, subject to regulatory approval, there is a great oppor- tunity for us to learn from each other and to build an even more exciting future together.”
james.stagg@
thecaterer.com
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