News on 7 February 2001
Compass Group is to acquire US healthcare and senior living/retirement
foodservice company Morrison Management Specialists for $563m (£382m).
A subsidiary of Compass Group will purchase all outstanding Morrison
shares for $40 (£27) per share.
Michael J Bailey, chief executive of Compass Group, said: “We are
delighted with this acquisition. Morrison’s experience and infrastructure
in the acute care hospital market has been a missing ingredient in our
North American portfolio until now.“
The president and chief executive of the Compass Group in North America,
Gary Green, commented: “This agreement will enable us to provide
the best possible service and range of choices to the healthcare and
senior dining marketplace.”
Glenn Davenport, who continues as president and chief executive officer
of Morrison said: “This is a great move for our shareholders, the
Morrison team and for our clients and customers. Compass Group is the
largest foodservice company in the world and a major player in the US
foodservice market. It brings tremendous opportunities for Morrison
and our employees to reach many of our goals.”
The healthcare foodservice market in the US is estimated to have annual
revenues in excess of $16bn (£11bn), of which approximately 30%
is outsourced to specialist foodservice organisations.
