The Caterer

Purchasing clause could hinder sale of SSP

03 February 2006
Purchasing clause could hinder sale of SSP

Compass Group could struggle to sell its SSP travel concession business to a trade buyer, according to a leading investment bank.

Dresdner Kleinwort Wasserstein (DKW) said that a purchasing clause in the deal, which ties the buyer into a five-year contract with Compass-owned supplier Servita, might cause a conflict of interest with two of the reported suitors - Autogrill and Elior.

It added that both groups would be under pressure to justify this to their shareholders.
A Compass spokeswoman said: "If potential buyers don't want to use Compass purchasing… we will entertain bids with or without the purchasing option."

Bids had to be submitted this week.

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