Compass has struck a deal to purchase European food services operator Vermaat Groep for €1.5bn (£1.3bn).
The hospitality behemoth's stock climbed more than five per cent during morning trading, as reported by .
Vermaat, which dominates the Dutch market, will provide Compass with a "unique opportunity" for sustained expansion across Europe, the catering firm announced to investors this morning.
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Compass chief executive Dominic Blakemore described Vermaat as a "best in class" operation that will "significantly strengthen" the group's premium European portfolio.
"This strategic acquisition represents a step change in our core markets by creating a strong platform for expansion across Europe," Blakemore said.
The company anticipates the takeover will enhance both margins and earnings per share during the first complete year of ownership.
Vermaat boss Rick Zeelen commented: "Compass and Vermaat are highly complementary businesses with similar cultures and priorities. The leadership team remains fully committed to executing its European growth strategy.
"Together, subject to regulatory approval, we will be able to provide clients with an even more compelling proposition in a highly attractive growth market, accelerating our premium offering in Europe."
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Vermaat is projected to achieve revenues of €700m (£519m) alongside double-digit operating margins in 2025.
Compass lifts earnings forecast
The catering giant has also raised its projected earnings for 2025 following stronger-than-anticipated performance from its North American division. The FTSE 100 company now anticipates underlying operating profit growth of 11 per cent, propelled by organic revenue expansion exceeding eight per cent, it announced.
Chris Beauchamp, Chief Market Analyst at IG, commented: "Compass shares have reacted enthusiastically to this morning's update, and the share price looks primed for more gains as it returns to its steady ascent following the volatility of March and April.
"The upgraded profit forecast shows that it is gaining pricing power and market share, pointing towards the potential for more profit upgrades in the months to come."
Turnover expansion reached 8.6 per cent during the third quarter of 2025, whilst year-to-date progress has achieved 8.5 per cent.
Performance in North America surpassed the international division, delivering 9.6 per cent advancement in the third quarter and nine per cent progress year-to-date.
North American turnover proved "particularly strong" as it capitalised on "favourable hospitality events", Compass noted.
Fresh business development stood at four to five per cent, the firm confirmed, alongside 96 per cent client retention.