Multibillion-euro acquisition: Compass Group finalizes acquisition of Vermaat for 1.5 billion euros
In a significant move, Compass Group, a leading player in the global food services industry, has agreed to acquire Vermaat Groep B.V. for approximately €1.5 billion. This acquisition is set to enhance Compass's growth in Europe, a market valued at over €115 billion.
Vermaat, a premium food services company in Europe, is renowned for its customized on-site food concepts and robust retail expertise. The company, which is a market leader in the Netherlands, has expanded its operations into Germany and France under the support of Bridgepoint.
Vermaat has innovated with the Join Program, a testament to its commitment to digital transformation. The company is also a leader in sustainable hospitality, maintaining a nearly 20% compound annual growth rate over the last 15 years. Despite the challenges posed by the Covid-19 pandemic, Bridgepoint has been a steadfast partner, supporting Vermaat's growth journey.
Rick Zeelen, CEO of Vermaat, remains committed to executing the European growth strategy. He, along with Vermaat's leadership team, including Rick Zeelen, looks forward to joining Compass. Olivier van Riet Paap, Partner at Bridgepoint and Head of Benelux, praises Vermaat's ambition, culture, and focus on quality. Nicolas Petitjean, Managing Director, Co-Head Private Equity Partnership Investments at Partners Group, also commends Vermaat's transformational journey.
The acquisition of Vermaat is expected to have a positive impact on Compass Group's margins and earnings per share (EPS) from the first year post-acquisition. Vermaat is anticipated to generate around €700 million in sales with a double-digit operating margin in 2025, reflecting industry-leading profitability which will be accretive to Compass Group’s financials.
Key factors supporting this impact include Vermaat’s strong profitability and growth track record, double-digit operating margin, EPS accretion, a leverage and deleverage plan, and strategic fit. The acquisition is expected to improve Compass’s earnings per share in the first year, given Vermaat’s profitability and contribution to Group earnings.
Following completion, Compass plans to achieve post-acquisition leverage of approximately 1.5 times net debt to EBITDA by the end of FY26. This strategic move is expected to deliver returns above the Group's cost of capital in the medium term, contributing to long-term shareholder value.
Since 2015, Partners Group has supported Vermaat in scaling operations, driving digital innovation, and advancing sustainability. Bridgepoint, too, has been a true partner, navigating lockdowns and accelerating international ambitions.
In conclusion, the acquisition of Vermaat Groep B.V. by Compass Group is set to have a positive impact on Compass's financial performance, driving margin enhancement and EPS accretion from the first year after the acquisition closes. The strategic fit, Vermaat's high-growth profile, and industry-leading profitability make this acquisition a significant step forward in Compass Group's European expansion.
[1] Financial Times [2] Bloomberg [3] Reuters [4] The Wall Street Journal
The acquisition of Vermaat Groep B.V., a leading food services company in Europe, by Compass Group, a major player in the global finance industry, is expected to boost Compass's growth in the business sector, particularly in Europe, which is valued at over €115 billion. This strategic move is expected to deliver returns above Compass Group's cost of capital in the medium term, contributing to long-term shareholder value, as reported by Financial Times, Bloomberg, Reuters, and The Wall Street Journal.
Vermaat, renowned for its customized on-site food concepts, robust retail expertise, and digital transformation initiatives, is anticipated to generate around €700 million in sales with a double-digit operating margin in 2025, reflecting industry-leading profitability that will be accretive to Compass Group’s financials, further highlighting the significant role of private equity in the finance industry.
