Compass Group is to sell Selecta, its food vending machine business, to the German private equity company Allianz Capital Partners for £772.5m.
The group said that approximately £500m of the proceeds will be used for a share buy- back programme over the next 12 to 18 months. Compass will pay £45m from the sale into the UK pension fund and the remaining amount will go towards reducing net debt.
Selecta, which was put up for sale in November, has operations in 22 European countries and generated revenue of £476m last year, with operating profits reaching £45m. The company’s earnings before tax, interest, depreciation and amortisation were £87m.