WATERLOO — VGM Group Inc. has sold three of its business units to Compass Group PLC while retaining the vast majority of its portfolio of VGM businesses.
The three business units which were sold are Streamline Solutions, headquartered in Tampa, Fla., VGM Club, headquartered in Waterloo, and VGM Club Canada, headquartered in Toronto.
“We are very proud of our VGM team and their ability to serve customers, and while it is unusual for us to sell a business, the combination of changing industry dynamics and the strong interest in our golf and food businesses from one of our partners led to this transition,” said Mike Mallaro, VGM Group Inc. CEO. “Compass has been a trusted business partner of VGM for two decades and we are confident the businesses and people will continue to thrive under their guidance.”
Compass will retain the employees, the office locations from which the businesses previously operated, and the company names. Compass Group is a British multinational contract food-service company headquartered in Chertsey, Surrey.
“This makes both the VGM and Compass companies stronger, while also ensuring all the people will retain their jobs, including many here in the Cedar Valley. The future of VGM is bright, and our plan is to reinvest the proceeds of the sale in our employee-owned business to fuel our accelerated growth plan,” said Mallaro.
The sale was effective at the end of 2018. Headquartered in Waterloo, VGM continues to employ 925 people across 30 states and Canada. Approximately 825 people work in the Waterloo offices.