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.
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