HDS Acquired by Compass

Compass Group has agreed to acquire HDS Services, a Farmington Hills, MI, based contract management company. HDS has specialized in the healthcare segment but also has accounts in higher education and B&I.The deal was made through Compass's healthcare-focused Morrison Management Services division.

HDS oversees about $290 million in managed volume from 60 acute care and 125 senior dining clients. Its clientele includes 85 accounts in Michigan, a market where Morrison currently has a scant four.Together, the two organizations will have 410 acute care and 375 senior dining clients and managed volume of $1.6 billion ($2.1 billion if the volume realized by Compass's healthcare managed services division, Crothall Service Group, is included).

Morrison will continue to use the HDS name for an unspecified period but new accounts will be sold under the Morrison brand and sales teams will be combined. HDS will also remain headquartered in Farmington Hills with current president John King retaining his title. He will report to Morrison CEO Glenn Davenport.