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Compass to use vending sales proceeds for stock repurchase

LONDON Contract foodservice giant Compass Group PLC has agreed to sell its Selecta European vending business to Allianz Capital Partners, a private equity firm, for approximately $1.53 billion, with much of the proceeds earmarked for a stock repurchase program.

The deal is expected to be completed by July.

Compass said it would return $990.9 million of the sale price to shareholders through an 18-month share buy-back program. In addition, the company plans to put another $89 million into its pension program, with the remainder used to pay off debt.

Selecta, which operates about 15,000 vending machines in 22 countries, last year had an operating profit of approximately $93.1 million on about $993 million in revenue.

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