On 18 May, Island Hotels Group Holdings plc (IHG) announced that it signed an agreement for the acquisition of 50% of the share capital of Buttigieg Holdings Limited which in turn wholly owns R.J.C. Caterers. The latter is a catering company operating in the retail and contract catering sector. Island Hotels reported that this acquisition will strengthen the operations currently carried out by the Group’s subsidiary Island Caterers Limited together with the aim of increasing overall turnover levels, exploit both local and international opportunities and enhance the efficiency of both businesses through synergies.
The purchase consideration for the acquisition amounting to a maximum of €1,314,460 will be settled through the issue of new shares in Island Hotels Group to Buttigieg Holdings Limited at a price of €1 per share.
The deal also includes an option on the part of IHG to purchase the remaining 50% of Buttigieg Holdings Ltd within a specified period and under certain terms and conditions.
In the announcement, IHG explained that this acquisition, which is still subject to certain regulatory and counter party consents, is expected to increase revenue and operating profits of the Group by around 10% compared to the 2010 figures. Moreover, this acquisition will further add a central production unit to the Group’s current production facilities aimed at streamlining the food production process and bringing about increased efficiency within the Group.