Guy Hands takeover vehicle Terra Firma, and German private equity company Allianz Capital Partners are the two last bidders in the running for Selecta, Compass Group’s food vending machines operator.
Selecta has operations in 22 European countries and generated revenue of £476m last year, with operating profits reaching £45m. Its earnings before tax, interest, depreciation and amortisation were £87m.
Terra Firma and Allianz were selected from a shortlist that also included Apex Partners, Advent and Carlyle Group as well as several continental private equity firms. Selecta’s nearest rival Autobar, which is owned by Charterhouse, is not thought to have bid.
The disposal of Selecta is the second big disposal by Compass as it seeks to mend its fortunes after a series of profit warnings and an investigation into alleged contract fraud.
The Times 12/5/07 page 65 (Business)
