Brothers sell off hospitality firm

Jun 30 2008 by Karen Dent, The Journal

AGATESHEAD firm has been acquired by a catering giant that operates in care homes, schools and work canteens across the UK. Hospitality Catering Services Ltd (HCS) has been snapped up for an undisclosed sum by Caterplus Services Ltd of Watford in a deal that also involved Caterplus merging with Warrington-based Taylor Shaw, an educational and corporate catering firm.

The enlarged group, the largest privately-owned catering business in the care market, now has a £35m-plus annual turnover and will employ more than 1,600 staff, catering for more than 350 schools and colleges, care homes, welfare shelters and offices and factories.

The three businesses will continue to trade under their individual brand names.

Caterplus approached HCS as it already worked closely with Taylor Shaw in the educational and corporate catering market. Brothers Colin and Andrew Hutchison, who owned HCS, will stay on under the deal, as will the 35 staff working on 28 contracts at more than 20 sites across the region.

Jim Lovett, Caterplus’s managing director, said: “They have got a great reputation locally. They are well regarded. This is our first foray into the North East. It is a growing area and Hospitality Catering Services is well positioned to help us expand in the area. We are interested in expanding and developing the business.”

Andy Miller, of BTG McInnes, which advised Caterplus on the deal, said: “This is a significant move for Hospitality Catering Service. Being part of a UK-wide organisation will give them greater scale and access to wider expertise and resources that will benefit schools, offices and canteens in their local market.

“The three entities have a very strong strategic and cultural fit and the merger has created an organisation that has a good balance of contracts across the education, care and welfare, and business and industry sectors, and a significant geographic spread across the UK.”

Ross Paterson of Ward Hadaway provided legal advice to Hospitality Catering Services, Pinsent Masons advised Caterplus while funding for the deal was provided by Yorkshire Bank.