Compass Group announced to the London Stock Exchange today that it bought VSG from Lloyds Development Capital and management for a cash consideration of £64 million on a debt free basis. VSG had revenues for the year ended 31 March 2010 of £121.3 million. Current annualised turnover is estimated turnover is estimated by Infologue.com at £150 million.
This move which is set to underpin the continued growth and development of the VSG business as the UK’s premier provider of security services. The partnership reinforces the Compass strategy to establish itself as a leading presence in the support services industry.
Ian Sarson, Group Managing Director of Compass Group UK & Ireland, said: “I am delighted to bring VSG into the Compass portfolio. Its strong organic sales, market leading client retention and organisational culture are an ideal match for our Compass business. The VSG business will materially enhance the security element of our offering and provide a huge opportunity to sell these services to our existing clients. In addition, this will greatly enhance the security part of our ‘bundled’ offer of soft services across all sectors.”
Compass Group UK and Ireland is part of Compass Group plc, the world’s leading foodservice company. It specialises in providing food, vending and an increasing array of related FM services to support its core business. Compass is a FTSE top 40 company with annual revenues of over £13.4 billion in the year to 30 September 2009. The company operates across the core sectors of Business & Industry, Defence, Offshore & Remote Sites, Healthcare, Education, Sports & Leisure and Vending.
Keith Francis, Managing Director of VSG, said: “We are delighted to be working as part of Compass who, as a global support services company, will give us the ideal platform to accelerate our growth. We believe this combination will enable us to build on VSG’s success to date and give us an exciting future. The Compass business and culture are an exceptional fit for the VSG team, thereby strengthening both new opportunities and existing relationships. This reaffirms our commitment to unparalleled levels of service and standards for VSG’s clients.”