Acquisition
Compass Group PLC
7 August 2001
7th August 2001
COMPASS GROUP PLC
COMPASS GROUP ACQUIRES US HEALTHCARE CROTHALL SERVICES GROUP
Compass Group PLC is pleased to announce the acquisition of Crothall Services
Group, the US healthcare services management company, specialising in
housekeeping, portering and laundry services. The total consideration is
$170m, payable in cash on completion, which is anticipated at the end of
August.
Michael J Bailey, Chief Executive of Compass Group PLC said, 'Crothall is an
excellent example of the 'best in class' company that Compass Group looks to
bring into our organisation. The US healthcare market is a significant growth
opportunity for our Group. We see Crothall as an important addition to our
business as it will support Morrison in building and strengthening our
presence in the healthcare market, which is almost unique in increasingly
requesting a 'one stop' service combining foodservice with certain other
facilities management services. Crothall will continue as a separate brand
and management team to provide housekeeping, laundry, portering and related
services for our healthcare clients where they are required. '
Crothall Services Group serves more than 250 hospitals across the US and
Canada, employs 8,500 people, and has managed volume in excess of $500
million. They have been the fastest growing company in their industry,
securing a market leadership position with over 9% market share.
Crothall Services Group founder and CEO, Graeme Crothall said, 'We are proud
to be joining Compass Group. We have for many years worked closely with
Morrison Management and are delighted to build on that relationship through
being part of Compass Group. The Group has an organisational philosophy of
allowing companies to continue to continue to focus on their own brands and
specialities. Crothall will be the Group's facilities management brand for US
healthcare, working closely with Morrison in building the Group presence in
the sector.'
No operational employee layoffs are planned as a result of this acquisition.
Crothall will retain its name and corporate headquarters in Wayne,
Pennsylvania, and Graeme Crothall will remain as CEO.
Glenn Davenport, CEO of Morrison, said, added, 'Graeme Crothall and I both
believe, as does Compass Group, that specialisation adds value for our
clients. Crothall's addition to the Group will allow this division to grow
and provide a service tailored to those healthcare clients who require
organisations that deliver the highest standards for foodservice and
facilities management.'
Ends
Enquiries:
Andrew Lynch, Group Finance Director, Compass Group PLC
Tel: 01932 573000
Nick Lyon/Wendy Baker, Hudson Sandler
Tel: 020 7796 4133
Notes to Editors:
1. Compass Group is the world's largest foodservice company
employing over 265,000 people in over 90 countries and with annual revenues in
excess of £8.3bn. Compass Group provides catering for clients including major
employers, educational establishments, hospitals, leisure venues, retail
locations and at major airports and stations throughout USA, Europe, and
developing markets in Asia and South America. It operates through
sector-specific subsidiaries such as Eurest, the world's largest specialist in
providing foodservice to business and industry clients. Further information
on the Group can be found at www.compass-group.com
2. Morrison Management Specialists is the only national US
company focused exclusively on providing food, nutrition and dining services
to the healthcare and senior living markets. Morrison operates through
Morrison Healthcare Food Services and Morrison Senior Dining, and serves
several of the largest and most prominent integrated healthcare systems,
hospitals and senior living communities in the United States. Morrison joined
Compass Group in April 2001.
3. Founded in 1991, Crothall Healthcare, Inc., is based in
Wayne, PA and specialises in non-medical support services such as
housekeeping, engineering and maintenance, construction project management,
energy asset management and laundry/linen services for focused in particular
on services for healthcare.
4. Market data: The US healthcare foodservice market is
over $16bn in annual revenues (source: Technomics). In addition, the
healthcare facilities management market is estimated at a further $16bn of
which over 30% is outsourced.