Compass Group to Acquire Creative Host Services

SAN DIEGO - Compass Group USA Investments, LLP, a wholly-owned subsidiary of UK-based Compass Group PLC (London: CPG), and San Diego, CA-based Creative Host Services, Inc. (Nasdaq: CHST) announced that it has entered into a definitive agreement under which a subsidiary of Compass Group will acquire Creative Host in a cash tender offer and subsequent merger.

The boards of directors of both companies have unanimously approved the agreement, under which Yorkmont Five, Inc., an acquisition subsidiary of Compass Group USA Investments, LLP, will commence a tender offer to purchase all shares of Creative Host's outstanding common stock for $3.40 per share, in cash. The tender offer, which is not subject to a financing condition, is expected to commence within the next six business days and will remain open for at least 20 business days following the commencement of the offer. In addition, certain principal shareholders of Creative Host, representing approximately 40.3% of the shares outstanding, have committed to tender their shares in the offer.

Creative Host serves over 100 concession facilities at approximately 30 clients in the airport concessions markets through Creative Host Services and GladCo Enterprises, Inc. The management team of Creative Host will remain with the business following the acquisition.


More from our partners