Selecta now on Compass bearing

Contract caterer Compass has announced its second acquisition in a week, following its demerger from Granada.

It is buying the 66.7% of shares it does not already own in Switzerland-based vending company Selecta, for £374m in cash.

Compass said that the move was strategically important because "clients are increasingly seeking the choice of a combined food service and vending offer". It believes that the ability to offer this combination has helped it expand its business in the USA.

Selecta is the largest Europe-wide vending company, with annual turnover of £343m during the year to 31 December 2000.

Compass chief executive Mike Bailey said: "We are particularly delighted that [chief executive] This Schneider and all of his management team intend to remain with Selecta and to continue to manage the business as part of Compass Group."

Last week, Compass bought US-based hospital caterer Morrison Management Specialists for £382m.