Searcy edges closer to management buy out

17 June 2010 by
Searcy edges closer to management buy out

The management team at exclusive contract caterer Searcyis close to completing a buyout of the business after weeks of sometimes fractious negotiations with current owner Alternative Hotels Group (AHG).

Led by chairman Richard Tear and chief executive Doug Tetley, the management team had expected to complete a deal by 1 June but an unexpected financial issue had threatened to derail negotiations.

It is thought the buy-out will be in the region of £2m, far short of the £20m AHG was reported to have paid for the business in June 2007.

Since then Searcy has lost the contract for the capital's Royal Opera House, failing to replace it with another of a similar calibre. Though it still counts prestigious clients such as the Gherkin, the National Portrait Gallery and St Pancras Grand among its roll-call, other operations such as the Commonwealth Club are considered to be less lucrative.

A source close to the negotiations revealed that at one point last week it looked at though AHG would listen to outside offers for the business, but that a deal was now likely to go ahead.

He added: "The original completion date was 1 June but the team discovered a financial blip late on in terms of the valuation of the company and return on investment. It led to minor skirmishes and things got fairly feisty at one point.

"They're now back in talks and it looks as though a deal could be done this week."

De Vere owner Alternative Hotels Group was set up in 2005 as a joint venture with the bank of Scotland and several Marylebone Warwick Balfour directors headed by Richard Balfour-Lynn.

It considers Searcy a non-core asset and is seeking to dispose of it to concentrate on its best-known brands such as Liberty of London, Malmaison and Hotel du Vin, and Village Hotels.

Alternative Hotel Group to stick with Searcy branding >>

Alternative Hotel Group acquires Searcy >>](http://www.caterersearch.com/Articles/2007/06/25/314473/Alternative-Hotel-Group-acquires-Searcy39s.htm)

[De Vere set to buy caterer Searcy's >>](http://www.caterersearch.com/Articles/2007/06/07/314217/de-vere-set-to-buy-caterer-searcys.html)

[Searcys rebrands and commits to B&I market >> ](http://www.caterersearch.com/Articles/2008/09/09/323308/searcys-rebrands-and-commits-to-b.html)
By James Stagg

E-mail your comments to James Stagg here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next job here with Caterersearch.com jobs

[Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking