Caterer and Hotelkeeper – 6231

GM in move to lead German catering market

GARDNER Merchant has bought a contract catering company in Germany with the intention of building it into the country's market leader.

Kielholz Catering, based in Dsseldorf, was acquired for an initial payment of £1.63m with a further £400,000 payable in a year's time.

Kielholz employs 155 staff, has a turnover of around £4m and operates 29 contracts at companies such as Nissan Motors, AEG and Fuji. The acquisition brings Gardner Merchant's total number of German contracts to 49.

This is the first acquisition for the company since its management buy-out from Forte, led by chief executive Garry Hawkes, in January 1993.

"Based on our experience in Holland with Van Hecke, where we have become the market leader, we believe there is potential to make similar inroads to the fledgling German market," Mr Hawkes said.

Contract caterers have only an 8% penetration into the industrial catering market in Germany.