Compass Group has formed Compass Group Japan - a joint venture with the Itochu Corporation and Fuji Oil - through the acquisition of an initial 45% in parent company GMJ, to be followed by a further 5% over three years.

The newly formed venture will initially have annual revenues of over ¥3bn (£17m) in a foodservice market of ¥3,200bn (£18bn). The company already has a number of contracts across Japan, in the business and industry, education and healthcare sectors, employing over 600 people. Major clients include Fuji Xerox, Isuzu Castic and Akebono Break.

Chief executive of Compass Group, Michael J Bailey, said: “The Japanese contract foodservice market is an important opportunity for Compass Group as it is the second largest single foodservice market in the world. We see this as a strategically important step in the Group’s future development.”

Tadahisa Ichihashi has been named as the new chief executive of Compass Group Japan. He said he was delighted with the move since it will provide Compass Group Japan with resources from which to build a leading position in the Japanese foodservice market.

The chairman of the venture, Graham Smith, added that he sees the relationship with Compass Group as being timely, bringing international expertise and the brands for which the Compass Group are so well known, while Itochu Corporation and Fuji Oil will bring local support and market intelligence.

The company expects growth through acquisitions and organically over the next three to five years, with the aid of its new partners.

www.compass-group.com

Jessica Jarlvi