EMC lands in Australian hands after agreeing to catering deal

Australian facilities services company Spotless Group has bought a Yorkshire-based company which provides catering services at many of the region's football grounds.

Selby-based Event Management Catering (EMC) which has 750 full-time and part-time staff, has been sold to a subsidiary of the Spotless Group.

Spotless Group employs a team of 37,000 people across 32 countries and has a turnover of 2.5bn Australian dollars (1.58bn).

All the jobs at EMC's UK operations have been safeguarded as part of the deal. Spotless said the total acquisition consideration was not expected to exceed 3m.

EMC's services range from corporate hospitality to the provision of catering services to spectators at sporting events, rock concerts and banqueting events.

The deal was completed after EMC received an approach from Spotless.

Spotless provides catering management services in a wide range of environments including venues such as the Melbourne Cricket Ground, the place where England retained the Ashes last month by winning the Fourth Test against Australia.

The company supplies catering at the Perth Convention and Exhibition Centre and Flemington Racecourse, the home of the Melbourne Cup Carnival.

Spotless also provides specialised cleaning, housekeeping and facility services to stadia and sporting events across the UK under its Cleanevent business.

Cleanevent, which was acquired in March 2010, provides cleaning and related services to the retail and leisure, sports and entertainment sectors.

In a statement, EMC said it was delighted with the result of this carefully planned deal.

Hamish Cook, the chief executive of the international services division of Spotless Group, said: "This is an exciting, well-matched, deal because EMC have an enviable portfolio of clients and we will be using their vast knowledge of volume catering to the sport and leisure industry.

"Spotless has related food services capabilities which have been developed over 50 years into a leading name.

"The plan now is to integrate the business in order that the company will flourish and evolve."

In a statement, Spotless said it intended to retain the current EMC management team.

Josef Farnik, the Spotless Group managing director, said: "Spotless has taken an important step forward in its international services strategy. With the addition of EMC, Spotless is well positioned to provide a unique integrated facility services offering to UK clients.

"Spotless intends to build on the powerful combination of catering, cleaning, waste management, security and related services to drive organic growth in the UK market, with an initial focus on the leisure, sports and entertainment sector."

During 2010, EMC's revenues were around 9m.

EMC's portfolio of contracts includes the KC Stadium in Hull, Oakwell Stadium in Barnsley, The Coral Windows Stadium in Bradford, The Galpharm Stadium in Huddersfield, the Keepmoat Stadium in Doncaster and The Shay Stadium in Halifax.

Tony Farmer, corporate finance partner at York-based accountancy firm JWPCreers, provided the EMC directors with advice.

He added: "We expect that this innovative change to the ownership and management of EMC will deliver long-term benefits to clients and customers.

"This significant sale is good news for the area as it protects skilled jobs."

Spotless was established as a single dry cleaning store in the suburbs of Melbourne in 1946. It has grown to become one of the most recognisable brands in the services industry.

The company made its debut on the Australian Stock Exchange in 1961. Over the last 50 years, it has grown organically and through acquisition.

It is split into a number of key divisions, including managed services, which operates facilities management, asset maintenance and multiple service contracts. Cleaning services is responsible for cleaning manufacturing and industrial plants, education campuses, hospitals and airports.

The company's food services division specialises in providing catering to a wide variety of clients, including businesses, sports venues, care facilities, schools and colleges.

More than 40,000 people use Spotless's hospitality services daily.

The company's laundry services division processes more than 100,000 tonnes of laundry annually across 19 plants.

A taste for the big events

SELBY-based Event Management Catering (EMC), which has been acquired by Australian facilities support services company, the Spotless Group, is one of the UK's best-known companies specialising in stadia catering services.

The EMC team has experience of providing catering for Rugby League internationals, England Under 21 football internationals and numerous rock concerts.

It is also involved in non-matchday activity, such as banquets and weddings.

Richard Biggs from Over Taylor Biggs, based in Exeter, provided legal advice during the negotiations surrounding the sale of the business.