Equistone's CH&CO bolts on Mitie Catering in £85m deal

CH&CO will pay £73m in cash at completion of the deal, and a deferred payment of up to £12m. Half of the deferred amount is payable within 12 months of completion and half is payable within four years of completion, subject to the achievement of certain performance milestones.

This is the company's first acquisition since Equistone's initial investment in May 2019. The company plans to support acquisitions and organic growth in the future.

Mitie comprises Gather & Gather and exhibition and events caterer Creativevents. Gather & Gather will continue to provide catering services to Mitie's integrated facilities management clients under a strategic partnership agreement. Through the acquisition, CH&CO has also gained a presence in Ireland.

The company's current management team will continue to lead the business.

Previous funding
Gather & Gather acquired a 51% stake in Creativevents in 2013 and acquired the remaining stake in 2015.

Company
Mitie, consisting of Gather & Gather and Creativevents, offers workplace catering and events services. The company operates 330 sites in the UK and Ireland, and employs 3,600 people.

The business generates revenues of £136.1m and operating profit of £5.2m.

People
Equistone Partners Europe – Ed Baker (investment director).
Mitie Catering – Phil Bentley (CEO).
CH&CO – Bill Toner (CEO).
Gather & Gather – Allister Richards (managing director).

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• Topics
• Expansion
• UK / Ireland
• Consumer
• Equistone Partners Europe
• Buy-and-build
• Build-up
• United Kingdom