Aramark buys Catering Alliance

Aramark, the US-owned contract caterer, has purchased Midlands-based Catering Alliance for an undisclosed fee. Under the deal, which takes effect immediately, Catering Alliance will continue to operate under the same name and management team, although under the Aramark umbrella.

Bill Toner, chief executive of Aramark in the UK, said: "We've bought a company with great talent and a proven track record."

Toner described Catering Alliance's business as "a perfect fit" for Aramark. "It's a privately owned company, with a lot of talent and a good client retention record that fits perfectly with our ethos," he said.

He added that the purchase was a key element of Aramark's international expansion programme and put the US caterer on track towards hitting its international acquisition and growth targets. Toner didn't rule out further acquisitions.

The takeover of Catering Alliance, which has 200 contracts and an annual turnover exceeding £50m, will propel Aramark closer to the number-two spot in the UK, currently held by Sodexho.

Its purchase also strengthens Aramark's geographical presence throughout the UK, with the bulk of Catering Alliance's business being located in the Midlands and North of England. Currently, about two-thirds of its contracts are in the business and industry sector, including car manufacturer Peugeot and airline British Midland. The rest of its business is in the education sector.

Catering Alliance's three founders and directors, Sean Hagan, Russell Scandrett and Michael Scott, described the takeover by Aramark as "seamless" and said that it would be "business as usual".

Scandrett added that the news had been well received by the company's 2,200 staff. "We have taken the time to explain the details to them and they understand there will be no front-line management change."

Source: Caterer & Hotelkeeper 29 January - 4 February 2004