Hospitality company bought by global giant
THE entertainment group owners of Leeds’ First Direct Arena is to expand its food service business after acquiring a Garforth hospitality company.
SMG Holdings operates 240 venues worldwide, from Soldier Field in Chicago to the Manchester Arena, and its purchase of CGC Events will enable it to broaden its presence into new areas.
Wes Westley, SMG president and chief executive, said: “By acquiring CGC’s established food service brand, SMG will further expand its presence in the UK market, combining best practices at CGC and SMG, as well as extend its UK food service business into additional business areas, including racetracks, rugby and soccer stadiums and heritage sites.
CGC provides catering, concessions and hospitality services to 25 accounts, including York Racecourse, Bradford City FC, Leeds Town Hall and the Hepworth Gallery in Wakefield.
It employs around 500 people and its latest accounts, for the year to March 2014, showed a pre-tax profit of £1.5m on turnover of £21.1m. In the last financial year it paid a dividend of £3m to its shareholders.
SMG, which has its European headquarters in Manchester, is backed by private equity owners American Capital, which has used its $1.1bn fund, American Capital Equity III, to support the purchase of CGC.
John Sharkey, executive vice president SMG Europe, added: “CGC is a great addition to our European business. Its client focus and demand for excellence in customer service aligns with our ethos, and we’re excited to grow the food and beverage component of our entertainment and external catering operations.”
