Fri, 18 Jun 2010 | MBO/MBI
Exclusive contract caterer, Searcy, is on the verge of sealing a management buy-out deal after several weeks of contentious wranglings with current owner, Alternative Hotels Group (AHG).
The deal, which is being led by chief executive Doug Tetley and chairman Richard Tear, was expected to have been completed by June 1, but encountered significant delays when an unexpected financial issue threatened to derail talks.
The value of the buy-out is around £2 million – a fraction of the £20 million AHG paid when it bought it in July 2007.
A source close to the negotiations said: “The original completion date was June 1 but the team discovered a financial blip late on in terms of the valuation of the company and return on investment. It led to minor skirmishes and things got fairly feisty at one point."
"They're now back in talks and it looks as though a deal could be done this week."
The devaluing of the business is thought to have been caused by the loss of its prestigious Royal Opera House contract and a failure to find a similar replacement. Its contracts still, however, include the Gherkin, St Pancras Grand and the National Portrait Gallery.
The Alternative Hotels Group was set up in 2005 with De Vere, the Bank of Scotland and several Marylebone Warwick Balfour directors. Searcy is considered a non-core asset, with directors wanting to focus resources on its other brands, including Liberty of London, Malmaison and Hotel du Vin, and Village Hotels.â¨
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