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Mitie sells catering arm to CH&CO for £85mln

Mitie Catering employs 3,600 people at over 330 sites across the UK and Ireland.

MITIE Group PLC -
CH&CO is a royal warrant holder

 
Mitie Group plc (LON:MTO) has sold its catering and hospitality business Gather & Gather for £85mln cash to CH&CO.

The sale follows a strategic review of the operation that concluded it would fit better within a specialist food business.

CH&CO is a royal warrant holder that has prepared banquets for the Queen and other esteemed clients.

Mitie Catering employs 3,600 people at over 330 sites across the UK and Ireland.

Management will transfer over to the new owners and existing customers will be supplied under an exclusive outsource partnership between the companies. 

Phil Bentley, Mitie’s chief executive, said the strategy going forward is to invest in facilities management services such as security, cleaning and engineering services and where it has a leading market position. 

"Gather & Gather is a niche player in the £4 billion UK contract catering market. By teaming up with CH&CO at this time, we believe this ensures the best choice and competitive pricing for our clients."

Liberum upped its price target to 230p from 210p following the sale, while the broker’s net debt target drops to £71mln. 

Quick facts: MITIE Group PLC

Price: 135 GBX

LSE:MTO
Market: LSE
Market Cap: £494.02 m
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