Compass buys Dutch caterer Vermaat in £1.3b deal

Compass Group has agreed to acquire European foodservice business Vermaat Groep for €1.5b (£1.3b) as it continues to build its portfolio in the region.

Vermaat Groep is the market leader in the Netherlands and has a growing presence in Germany and France, which are among Compass’s top 10 markets. 

Compass said the deal would provide a “unique opportunity for further sustainable growth in Europe”.

“Vermaat is a best-in-class foodservice business, which will significantly strengthen Compass Group’s premium offer across Europe and provide us with exceptional leadership talent,” said Dominic Blakemore, group chief executive of Compass.

“This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe.”

Vermaat Groep is on track to deliver sales of c.€700m (£607m) with a double-digit operating margin in 2025, according to a Stock Exchange announcement this morning.

Its management team will join Compass on completion of the deal, but continue to operate the business on a standalone basis.

Rick Zeelan, chief executive of Vermaat Groep, said the two caterers were “highly complimentary businesses with similar cultures and proprieties”.

This is the latest acquisition for Compass, which employs 580,000 people in around 30 countries worldwide. 

While it has a strong presence in North America, the group is looking to build its European footprint via strategic acquisitions. This saw Compass acquire German caterer Hofmann-Menü Holdings for an estimated £237m in 2023 and take over hospital coffee provider Peabodys Coffee in 2024. It also completed the landmark £475m acquisition of UK and Ireland rival CH&Co in 2024.

Speaking on an earnings call this morning, Blakemore said: “In North America we’ve leveraged acquisitions to build a high-growth market leader and we’re replicating this same strategy in Europe.”

Compass said it had seen organic revenue growth of 8.6% worldwide in the third quarter of the year and 8.5% for the year to date, with a client retention rate of over 96%. It has also upgraded its profit guidance for the year.

“The business is in great shape; the market remains strong and we’re hugely excited about the future," Blakemore added.

The Vermaat transaction is subject to regulatory approval and consultation with the Vermaat Works Council.