Fazer Group has agreed to sell Fazer Food Services to Compass Group PLC, as it aims to focus on its FMCG and direct-to-consumer businesses. The transaction is subject to EU Commission’s competition approval.
Fazer Food Services is a premier food service provider in the Nordics. Following the proposed acquisition, Fazer Food Services will be able to invest in its business opportunities and better leverage its full potential. Compass Group PLC is a leading global food service provider operating in around 45 countries. Fazer Group will focus on executing its strategy and invest in growth, both organic and through M&A.
Fazer Group is today a multi-faceted group with limited synergies between the fast-moving consumer goods and food service businesses.
“We see interesting growth opportunities in all of Fazer Group’s businesses – each with their specific investment requirements – and, therefore, we have decided to streamline the business portfolio to enable focus in capturing these opportunities. We are extremely pleased to have Compass Group PLC as a potential new owner for Fazer Food Services. Fazer Food Services can start a new phase in its journey with even stronger support to grow and further improve its business. Fazer Group will use the funds from the sale of Fazer Food Services to invest in Fazer Group’s growth strategy,” says Christoph Vitzthum, president & CEO of Fazer Group.
The transaction has been agreed for an enterprise value of approximately EUR475m, excluding closing balance sheet adjustments and earn-out upside potential.
Dominic Blakemore, CEO of Compass Group, said: “Fazer Food Services is a highly regarded food service business in the Nordic region, and like Compass Group PLC, 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.”
Compass Group PLC is a leading global food service provider with revenues of around EUR26bn. It operates in around 45 countries, employs 600,000 people and serves over 5.5 billion meals a year. The company specializes in providing food services across the core sectors of business & industry, healthcare & seniors, education, sports & leisure and defense, offshore & remote, with an established brand portfolio.