Industrial catering group Compass is selling a number of its businesses for £1.82 billion and plans to return £500 million of the proceeds to shareholders in a share buy-back over the next 18 months.

A further £275 million will be pumped into the pension fund, while £143 million will be used to buy out the remaining 51% of the Levy Restaurant business in the US. The balance will be used to reduce debt.

The deal is on a debt and cash free basis and involves the travel concession business Select Service Partner, including Creative Host Services in the US, and the UK motorway services business Moto.

Buying the businesses is a consortium led by Macquarie Bank, although the remainder of the SSP business is going to companies controlled by EQT, a group of private equity funds.

Posted: 04|10|06 at 8:19 am. Filed under: UK News.