This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

UK Sparks: Mitie Group Sells Catering Arm For Up To £85m


Visit: Edison

Outsourcing company Mitie Group has confirmed that it is selling its catering and hospitality arm to specialist caterer CH&CO for up to £85m in cash. The disposal of Mitie Catering will be accompanied by the formation of a new strategic partnership between Mitie and CH&CO, ensuring that the Gather & Gather catering offer remains exclusive to Mitie clients.

Mitie says the sale of the operation, which employs more than 3,600 people, follows a strategy which concluded that its long-term future would be “better served by being part of a larger specialist catering group”.

Chief executive Phil Bentley says Gather & Gather is a “niche player” in the £4bn UK contract catering market and its combination with CH&CO will release funds for reinvestment and balance sheet strengthening.

Wound care company ConvaTec Group has appointed John McAdam as chairman from September 30, when new chief executive Karim Bitar will also arrive. Interim executive chairman Rick Anderson will step down and resume his role as a non-executive director.

Former ICI chief executive Dr McAdam recently stepped down as Rentokil Initial chairman and is due to retire as United Utilities Group chairman on December 31.

LondonMetric Property has agreed to purchase and fund a new 232,000 sq ft distribution warehouse adjacent to junction 36 of the M62 motorway near Goole, Yorkshire, for £24m.

The warehouse has been pre-let to speciality chemical company Croda International at an annual rent of £1.3m, giving a yield of 5.2%. Finally, a new joint venture between self-storage group SafestoreHoldings and Carlyle European Real Estate Fund is to buy M3 Self Storage, which operates six storage sites in Amsterdam and Haarlem in the Netherlands. Safestore says it will invest in a 20% equity stake for about €5m and will provide management services to the joint venture. Separately, Safestore has completed the acquisition of a 34,000 sq ft freehold store near Heathrow Airport from Rockpool Investments for £6.5m.

Disclosure: Edison

Edison is authorised and regulated by the Financial Conduct Authority. Our research is a marketing communication as defined by the FCA, this communication only contains information that is an acceptable minor non-monetary benefit as defined under COBS2.3A19(5).

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Edison and is being posted with permission from Edison. The views expressed in this material are solely those of the author and/or Edison and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

trading top