Swiss snap up rail services firm

European Rail Catering (ERC), the company formed by a management buyout of British Rail's on-board catering division in October 1995, has been bought by Swiss-owned Rail Gourmet.

Rail Gourmet is the train catering wing of SAirGroup, previously known as the Swissair Group. The division also includes airline caterer Gate Gourmet.

ERC, which changed its name from OBS Services this year, provides on-board services to six of the privatised UK rail companies. It turns over £40m a year, including supply-only contracts, and employs 750 people.

The acquisition almost doubles the revenue of Rail Gourmet, which is also responsible for running train catering services in Spain, Belgium and Denmark.

ERC marketing and sales director Mike Smith and fellow directors, including managing director Terry Coyle, plan to remain with ERC for at least two years.

A spokesman for SAirGroup said jobs were safe.