GM goes to school

Gardner Merchant (GM) has bought two contracts from rival firm Sita in a bid to gain experience in the local authority school meals market.

The contracts, at Bromley and Kingston-upon-Thames, both in outer London, have a combined annual turnover exceeding £2m.

In Kingston, GM will deliver free packed lunches to 45 schools. The contract, which runs out next April, has been operated by Sita since 1994. As part of the deal, GM subsidiary Tillery Valley will also run welfare meals in the borough.

The Bromley contract involves catering at some 60 primary schools. It is worth £1.5m a year and runs out in April 2000.

"We took on the contracts to give us experience and increase our levels of understanding of working with innovative councils," said Tim Cookson, managing director of education services at GM. They were bought for a "peppercorn sum", he added.

Sita is understood to want to concentrate on its core services, which include refuse collection.