Mitie sells food unit to the Queen’s caterers
Outsourcer Mitie will sell its catering and hospitality business for up to £85m to the Queen’s caterers, CH&CO it said today.
The decision comes as the company tries to turn around in an environment where outsourcers are finding it increasingly difficult to operate.
After a review of the business, Mitie decided that its catering wing would be “better served by being part of a larger specialist catering group, rather than being self-delivered by Mitie,” it said in a statement today.
Chief executive Phil Bentley said the company is investing in areas such as security, clearing and engineering services where it thinks it leads the market.
“By teaming up with CH&CO at this time, we believe this ensures the best choice and competitive pricing for our clients, whilst releasing funds for reinvestment and strengthening our balance sheet,” he said.
Staff and senior management will stay on with the business as is transfers to CH&CO, which has a contract to cater the Queen.
The two firms will form a partnership so that Mitie can still offer catering services but now delivered by CH&CO, it said.
Shares in Mitie were trading up 2.5 per cent to 163p this morning.