Compass Group has agreed to purchase Dutch food services company Vermaat Groep for an enterprise value of €1.5bn ($1.74bn) from private equity company Bridgepoint.
Bridgepoint will completely divest its stake, alongside Partners Group, which initially invested in Vermaat in 2015 and retained a minority interest following Bridgepoint’s investment in 2019.
Founded in 1978 as a delicatessen, Vermaat has evolved into a key player in the Dutch food services sector. The company began its partnership with Bridgepoint in 2019.
Compass describes Vermaat as a “high-performing” multi-sector platform that presents a “unique opportunity” for sustainable growth within Europe.
Vermaat holds a leading position in the Netherlands and is expanding its footprint in Germany and France, both of which are among Compass Group’s top ten markets.
The company has achieved a compound annual growth rate close to 20% since 2010, alongside good profit margins.
Vermaat is projected to generate sales of €700m with a double-digit operating margin by 2025.
The acquisition is anticipated to enhance Compass Group’s margins and earnings per share in the first full year of ownership.
Upon completion of the deal, Compass expects its post-acquisition leverage to be approximately 1.5 times net debt to earnings before interest, taxation, depreciation and amortisation by the end of FY26, prior to a reduction in FY27.
This transaction is pending regulatory approval and consultation with the Vermaat Works Council.
Compass Group CEO Dominic Blakemore stated: ” Vermaat is a best-in-class food services business which will significantly strengthen Compass Group’s premium offer across Europe and will provide us with exceptional leadership talent.”
The management team of Vermaat will join Compass Group upon completion of the transaction and will continue to operate the business on a standalone basis.
Vermaat CEO Rick Zeelen stated: “Compass and Vermaat are highly complementary businesses with similar cultures and priorities. The leadership team remains fully committed to executing its European growth strategy.
“Together, subject to regulatory approval, we will be able to provide clients with an even more compelling proposition in a highly attractive growth market, accelerating our premium offering in Europe. We look forward to joining Compass and the exciting journey ahead.”
In 2024, Compass Group UK & Ireland’s Compass One division announced the purchase of Peabodys Coffee, a provider of food and beverages within healthcare environments.
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