Caterer ISS Eaton has said its acquisition of northern catering firm the Catering People for an undisclosed sum will make it more competitive when pitching for national contracts.
The Catering People was founded by Andy North and Aileen Smith and has annual turnover of £10m with more than 250 employees. It operates predominately in the business and industry sector, with some education and public business as well.
Simon Titchener, managing director of ISS Eaton, said the purchase, would provide it with the infrastructure and resources it currently lacked in the north of England.
"We've missed out on a few national contracts previously due to the perception we're a London caterer," said Titchener. "The deal is a key strategic fit as well as cultural and helps us demonstrate we are very much a UK operator."
The acquisition along with organic growth means ISS Eaton will finish the year with annual turnover of £35m. Titchener has stated he wants to grow the business to £100m by 2010.
Foodservice consultant Chris Stern said the deal made sense and represented "a good fit" for both companies.