Contract catering group Compass Group announced on Monday that it is to acquire its British counterpart CH&CO for around £475 million ($600 million), in order to strengthen its presence in the UK and Ireland.

In a press release, Compass points out that CH&CO boasts a highly respected management team within the sector, as well as a solid track record in terms of operational performance.

The company highlights the quality of its customized offering in the fields of corporate canteens, hospitals and healthcare, sports and leisure, and education.

Compass explains that its diversified customer base, as well as its strong geographic positioning, will enable it to complement its current footprint.

CH&CO generates annual sales of around £450 million ($570 million).

The acquisition, the timing of which is subject to regulatory approval, is to be accompanied by a balance of payment ('earn out') to be paid over the next two years based on the achievement of certain results.

Listed on the London Stock Exchange, Compass shares were down 0.1% on Monday morning in early trading following the announcement of this merger.

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