Mitie Group are to sell off their catering business to CH&Co who are a royal warrant holder in a deal worth £85m.
The deal includes Gather & Gather and Creativeevents brands, and the deal will bring in an initial £73m in cash on completion with a deferred £12m payment over four years, should certain performance targets be met.
CH&Co boss Bill Toner said, “We are very excited about the future growth potential for our business in our strategic partnership with Mitie – we bring scale and catering expertise, Mitie brings an extensive client list and innovation, we both share a reputation for great customer service.”
Phil Bentley, chief executive of Mitie said, “Mitie’s strategy is to invest in our core technology-led facilities management services – such as Security, Cleaning and Engineering Services – where we have a leading market position.
“Gather & Gather is a niche player in the £4bn UK contract catering market. By teaming up with CH&Co at this time, we believe this ensures the best choice and competitive pricing for our clients, whilst releasing funds for reinvestment and strengthening our balance sheet.”
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