Compass Group is set to acquire Vermaat Groep, a Dutch food services company, for €1.5bn ($1.74bn) from Bridgepoint. Vermaat, founded in 1978, has seen significant growth, with a compound annual growth rate close to 20% since 2010. It is projected to generate €700m in sales with a double-digit operating margin by 2025.

The acquisition is expected to enhance Compass Group’s margins and earnings per share in the first full year of ownership. Upon completion, Compass Group’s post-acquisition leverage is anticipated to be around 1.5 times net debt to earnings before interest, taxation, depreciation, and amortization by the end of FY26.

Compass Group CEO Dominic Blakemore sees Vermaat as a best-in-class food services business that will strengthen the company’s premium offer across Europe. The management team of Vermaat will join Compass Group and continue to operate the business independently. Vermaat CEO Rick Zeelen expressed excitement for the partnership and growth opportunities in the European market.

Compass Group’s acquisition of Vermaat is pending regulatory approval and consultation with the Vermaat Works Council. The move aligns with Compass Group’s strategy to expand its presence in key European markets, such as Germany and France. The deal is expected to accelerate growth and provide a compelling proposition in the food services sector.

Read more at Yahoo Finance: Compass Group to acquire Vermaat from Bridgepoint