Non-Binding MOU
Compass Group PLC
12 July 2001
12 July 2001
COMPASS GROUP PLC
NON-BINDING MEMORANDUM OF UNDERSTANDING
WITH SWISSAIR GROUP
Compass Group today confirms that it has signed a non-binding memorandum of
understanding with Swissair Group which would represent an exchange of assets
enabling Compass Group to acquire Restorama, Rail Gourmet and Gourmet Nova,
and to dispose of its in flight business, Eurest In-flight.
Eurest In-flight has a strong presence in the charter airline catering market
with particular focus on Spain and Greece.
Restorama provides foodservice for clients (mainly in the business and
industry sector) in Switzerland, Germany, Austria and Asia. Rail Gourmet is a
leading provider of quality on-board foodservice to customers travelling by
rail in Europe - with operations in Spain, Switzerland, UK, Belgium and
Scandinavia. Gourmet Nova is an airport restaurant and rail station
foodservice company with activities including business in the UK & Finland.
Michael J Bailey, Chief Executive, Compass Group, said: 'This agreement has
enormous strategic logic for both groups and is therefore very attractive.
Eurest In-flight has grown successfully working for charter clients and is a
key niche player in the in flight market. Its future growth would benefit
from the extensive Gate Gourmet network.
'Compass Group has a strong presence in providing foodservice for customers on
the move through airport restaurants and at rail stations. Restorama and
Gourmet Nova are both companies with strong reputations in their target
markets and would also be an excellent strategic fit for the Group, meeting
our criteria for in-fill acquisitions. Rail Gourmet would be an important
extension of our portfolio with its position in the on-board sector and would
be an excellent addition to Compass Group's position in the European Rail
Business.
'We believe that this agreement enables us to better meet the needs of our
clients and customers and deliver value to our shareholders. We also look
forward to welcoming the employees of Rail Gourmet, Restorama and Gourmet Nova
to the world's leading foodservice organisation.'
Mario Corti, Chairman, President and CEO of Swissair Group said, 'The planned
transaction is a further step in our strategy to strengthen the Swissair
Group's core businesses. This transaction at a stroke enhances Gate Gourmet'
position in Europe while providing us with an excellent opportunity to expand
our business further. Eurest In-flight has grown successfully focusing in
their key markets and its future growth will benefit from the extensive Gate
Gourmet network.'
The parties will make a further announcement in due course.
Enquiries:
Cathi Lawrence, Corporate Communications Director, Compass Group PLC
Tel: 01932 573000
Wendy Baker, Hudson Sandler
Tel: 020 7796 4133
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