American group eats up food service business

American group PT Holdings has bought First Choice, the Staffordshire supplier of spare parts for the catering industry.

First Choice is to become part of the £250m-turnover group, which includes Parts Town, the world’s largest distributor of OEM parts for the foodservice industry.

The Cannock-based group employs around 140 people and has grown annual sales to £28m since it was founded in 1999. Its last published accounts, for the year to June 2016, showed pre-tax profits of £2.0m.

First Choice managing director John Whitehouse believes the deal will take the company “to the next level and will enhance the customer experience”.

He said: “It’s very exciting. It will grow our business immeasurably and expand our stock and service capabilities to even greater heights. It also opens up the very real possibility of First Choice Group entering new markets, something we’ve long had the ambition to do.”

The company will keep the First Choice Group brand, with Whitehouse and director Carl Bate, who heads up procurement and logistics, continuing to run the group.

First Choice is hopeful the deal will create opportunities in Europe and the potential for new partnerships with global brands.

It is already gearing up for expansion, and in May it is moving into a purpose-built headquarters at Kingswood Lakeside in Cannock.

“John, Carl and the whole First Choice team have built an extraordinary business,” said Steve Snower, chief executive at PT Holdings.

“This partnership further strengthens PT Holding’s market leadership in genuine OEM parts distribution.”

First Choice was advised by a team from Higgs & Sons, led by Susheel Gupta and Jamie Partington. They worked alongside Crowe Clark Whitehill partner Andy Kay, who provided specialist corporate finance input.

The value of the deal has not been disclosed.