JP Foodservice lands Compass Group deal

MARYLAND WATCH

October 11, 1997

Columbia-based JP Foodservice Inc. said yesterday that it signed a contract to become a key supplier for Compass Group USA Inc., a Charlotte, N.C.-based catering firm.

The three-year agreement has an estimated value of $240 million, JP said.

The contract can be renewed in October 2000, JP Foodservice said.

JP said that, under the agreement, it will provide food supplies to approximately 900 Compass Group locations, including its Eurest Dining Services, its Bate-man health care division, its Chartwells school division and its Canteen Vending Services.

JP said nine of its branch operations in the Northeast and Midwest United States would be involved with supplying Compass operations.

Compass Group USA is owned by Compass Group PLC, an international catering firm based in Surrey, England.

JP, which had revenue of $1.2 billion last year, is seeking to acquire competitor Rykoff-Sexton Inc. of Wilkes-Barre, Pa., in a stock swap valued at about $1.4 billion.

The publicly held company employs about 840 in Maryland.

Pub Date: 10/11/97

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