Global retailer Ahold said its US Foodservice division has won a five-year $4bn contract Stateside with the North American arm of London-based foodservice group Compass.

The $800m-a-year deal will double US Foodservice’s business with Compass and follows its purchase last week of Allen Foods for an undisclosed sum.

Last month, Ahold CEO Cees van der Hoeven, warned that full-year earnings could fall by up to 8%. And announced plans to get rid of non-core businesses after a dismal results from its South American operations.