Compass broadens its US horizons
Compass Group has broadened its business base in the USA with the acquisition last week of Flik International, an upmarket catering firm based in New York, for $16m (£10m).
Flik has 85 business and industry contracts in and around New York and north-eastern USA, many of them executive dining operations similar to those run by Compass's Roux Fine Dining arm in London.
Clients include prestigious financial institutions and multinationals such as Price Waterhouse, Dun & Bradstreet, Nestlé and Crédit Suisse.
Total turnover for the year to 30 June 1994 was $45m (£28m), which is expected to grow to $55m in the current year. The company's margins are understood to be less than 3% at present.
Flik International was founded in 1971 by Rudiger Flik, who will remain incharge of the company for a specified period of time. He will report to Mike Bailey, chief executive of Compass Group's US catering operations.
It was Mr Bailey, a former managing director of Gardner Merchant's US business, who masterminded the group's entry into the USA a year ago through the acquisition of Canteen Corporation for about £300m.
"We are delighted with the opportunities this partnership will present in the future," said Mr Bailey.
