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Thu 20th Oct 2016 - Update: SSP, Chameleon Pub & Dining, Starbucks and Stonegate
SSP enters Indian travel food and beverage market: Transport hub foodservice specialist SSP Group has agreed to create a joint venture, whereby SSP will own a 49% stake in Travel Food Services (TFS), a leading operator of food and beverage concessions in travel locations in India. SSP will acquire shares from the Kapur Family Trust, SNVK Properties Private Limited and KAPCO Caterers, part of the K Hospitality Group and subscribe for new shares in TFS. K Hospitality operates a broad range of food and beverage outlets across India. TFS operates food and beverage outlets in travel locations, with approximately 170 units in India including at six major airports in both domestic and international terminals and in railway stations. It also runs a number of airport lounges. In addition to these contracts, it operates food and beverage outlets at Muscat Airport in Oman. Its brand portfolio includes a number of strong in-house concepts as well as leading third party brands such as KFC, Krispy Kreme, Pizza Hut and Coffee Bean and Tea Leaf. SSP is acquiring 49% of TFS for an expected net consideration of £57.9 million. The acquisition will take place in two stages. The first stage is to acquire a 33% stake for an estimated net consideration of £39.0 million. This stage is expected to be fully completed by the end of February 2017. The second stage, to acquire a further 16%, is expected to take place by the end of 2018, for a net consideration of approximately £18.9 million, contingent upon the performance of the business. The consideration will be satisfied out of existing debt facilities. The transaction is expected to be earnings enhancing in the first full year of operation and to exceed SSP’s cost of capital by the third full year following the first stage of the acquisition. TFS’s revenue was £41.7 million and Ebitda was £8.3 million for the year ended 31 March 2016. In the year ending 31 March 2017, TFS will benefit from the first time inclusion of the recent buyout of certain joint venture partners, the full contribution of new units opened in 2016 and on-going like for like sales growth. Taken together, these items are expected to add approximately £3.0 million to Ebitda in the year ending 31 March 2017. As at 31 March 2016, the gross assets of TFS were £25.6 million. Completion of this acquisition is subject to a number of conditions, consents and approvals. Commenting on the deal, Kate Swann, chief executive of SSP said: “This partnership is in line with the strategy we set out at our IPO. We have been looking for the right entry point into this exciting growth market and are delighted to have found an excellent partner in TFS. TFS brings a well-established business with a strong portfolio of brands. The combination of SSP’s international expertise in the travel sector and TFS’ strong local presence will provide an excellent platform for future growth in the Indian market.” Sunil Kapur, chairman, K Hospitality Group, added: “We are delighted to be partnering with SSP. SSP’s international experience and proven track record, coupled with our knowledge and position in the region, means that we have a winning partnership to create a strong proposition for growth.” 

Chameleon Bar & Dining reports return to profit: Chameleon Bar & Dining has reported a profit before tax of £179,000 in its most recent financial year compared to a loss of £4,000 last year – turnover reduced from £4m to £3.7m. Chairman Alistair Arkley said: “We are delighted with the turn around in the business. This has come about as a consequence of being able to spend more time on the existing estate now that we have reduced the estate size and removed unprofitable and time-demanding leased units. We have seen a substantial improvement in the rest of the estate with the operating profit moving from £181,000 to £320,00 and a profit before tax rising to £179,000. We are continuing to develop our destination food business in Yorkshire and the North West with local sourcing of food and a strong emphasis on freshly prepared meals and good quality drinks. We were delighted to welcome Marc Craddock as our new managing director on the retirement of Phil Strong. Marc has broad experience in the industry having run Timothy Taylors managed pubs and more recently Charnwood Pub Co. I’m sure that Marc will build on the work done by Phil and bring a new and fresh approach to the company. Current trading is broadly in line with expectations.”

Stonegate Pub re-launches its Living Room site in Manchester with two new branded rooms: Stonegate Pub Company has re-launched its Living Room venue in Manchester with the introduction of two branded concept new rooms, The Lounge and The Haig Club Clubman room – the latter, unveiled by former footballer David Beckham. The Haig Club Clubman room, opened in partnership with Haig Club, was officially opened by Beckham. The first of its kind in the UK, the room comes complete with a private bar and bespoke booths. General Manager of The Living Room, Mike said: “The Living Room isn’t just another venue, it is a set from which many a great story has been told. Our enviable reputation has been crafted over the years through hard work and attention to detail and it is one we are very proud of. This latest refurbishment will help us build upon that further. By introducing the two branded concept new rooms in partnership with Grey Goose and Haig Club, we have a truly unique offering that isn’t available anywhere else.”

Starbucks expands commitment to 100% renewable energy across Europe: Starbucks has expanded its commitment to sourcing 100% of its energy from renewable sources across all of its company-owned stores in Europe. The move comes one year on from signing the RE100 agreement, a global initiative designed to engage influential companies to use 100% renewable power. The expansion now sees over 550 company-owned stores in the UK, France, Switzerland and the Netherlands source their energy from renewable sources including wind and hydropower, with stores in Austria soon to follow. Starbucks works with a variety of energy suppliers across Europe and have identified providers that are able to offer renewable energy tariffs. The energy used to light, heat, cool and power equipment in stores is matched against these renewable contracts and helps not only to reduce environmental footprint, but also helps towards driving the European renewable energy landscape. Jaz Rabadia MBE, senior manager of energy and initiatives at Starbucks Europe, said: “Following our RE100 commitment, we’re delighted to see our company-owned stores across Europe achieve the ambitious target of sourcing 100% of their energy from renewable sources. We are focused on creating stores that are designed, constructed and operated with sustainability in mind, and we understand the importance of contributing to a low-carbon economy. We are committed to building on the progress already achieved and will continue working on developing long term relationships with renewable energy providers and generators.”

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