Compass in US buy
Wednesday 03 May 1995
Compass, the contract catering group, yesterday snapped up a string of blue-chip corporate clients through the $16m (£10m) purchase of Flik International, a private company based in New York.
Flik was established in the early 1970s by the husband and wife team of Ruby and Julie Flik. It has more than 85 executive dining contracts in and around New York and Boston, including several law firms, Ciba-Geigy, Sterling Drug, Price Waterhouse and Deutsche Bank.
The deal comes almost exactly a year after Compass initially moved into the US contract catering market - which is bigger than the rest of the world market combined - via the $450m acquisition of Canteen Corporation.
While Flik will be bolted on to Canteen's existing executive dining operations, it will retain its own identity. Flik has 1,300 employees, but Compass said there were no plans to make "wholesale cost savings".
There is a high degree of loyalty attached to executive dining contracts. Despite contracts containing three-month notice clauses, the average life is about 10 years.
Flik turned over $45m of business last year, equating to $530,000 per contract. Profits were not disclosed, although Compass said the deal would not dilute earnings.
Compass has an executive activity in the United Kingdom called Roux Fine Dining, which is managed with Albert Roux, the restaurateur.
Results for the six months to the end of March are due from Compass in two weeks. Analysts are looking for pre-tax profits, which will include a full six months' trading from Canteen, to rise by more than one-third to slightly more than £30m.
Compass shares eased 1p to 333p yesterday.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Germanwings plane crash: Video shows co-pilot Andreas Lubitz learning to fly as a teenager
- 3 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Children take eight Isis captives to be beheaded in latest propaganda video
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£32000 - £38000 per annum + benefits: Ashdown Group: A highly successful, inte...
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...