Compass caters for more schools with Cygnet takeover

Cygnet Food Holdings, based in Warrington, Cheshire, supplies hot meals to more than 450 schools across England, many of which do not have catering facilities onsite.

Compass said the acquisition of Cygnet, which will increase its existing schools business by around 25 per cent, will “further improve its offering to the UK education sector”.

The business was sold by father-and-son Jim and Ian Cartwright and, although no figure has been disclosed, it is expected they will bank several million pounds following the deal.

Jim Cartwright, managing director, said the business culture of Compass was very similar to that of the business he founded.

“Compass understands the education sector and has the expertise and specialist support to drive our business forward,” he said.

For the year ended 31 December 2010 Cygnet had revenues of £9.3 million and gross assets of £2.2m.

Ian Sarson, group managing director of Compass Group UK and Ireland, said: “We are delighted with the acquisition of Cygnet which is a great addition to our education portfolio. At a time when the public sector is coming under increasing budgetary pressures, it will enable us to offer more local authorities a proven cost-saving solution at the same time as delivering nutritionally balanced and healthy meals.”

Compass, currently prepares meals for pupils at 2,000 schools and over 100 colleges and universities in the UK.

The acquisition is the latest in a series of deals done by Compass in recent weeks. In July it announced its Hong Kong subsidiary had bought Shing Hin Catering, which it said would strengthen its existing foodservice business within the education and industry sectors in the region.

Compass generated annual revenues of £14.5 billion in the year to 30 September 2010 and now operates in more than 50 countries, employing more than 430,000 people and serving more than four billion meals every year. Shares in Compass closed up 0.5p at 552.5p.