EDITOR’S COMMENT
4 C AT E R I N G INSIGHT /^ FEBRUARY^2018 /^ http://www.cateringinsight.com
TH E TAKEOVE R SHOW
It’s been a breathless couple
of months for buyouts in the
catering equipment sector, as
consolidation continues apace.
January saw both the Lockhart
acquisition of the Aggora Group
and Dunstable-based Advance
Group enter the takeover fray with
its purchase of nearby Prestige
Catering Equipment. Coupled with
Unitech Group’s controversial buyout
of the insolvent Francis Catering
Equipment last September, the
distributor market is shaping up to
comprise of fewer, larger players.
There are really only a few dealer
groups who can now afford to go
on an acquisitive run, and with
Advance hitting £18.1m turnover for
the 2016-2017, this has enabled it to
join the giants of the industry such
as Airedale, Lockhart and Nisbets in
fishing for distributors to scoop up,
though chairman Steve Coates was
at pains to emphasise that Advance’s
model is to buy and build businesses
with their existing owners rather
than full integration.
What’s interesting about the
Lockhart Aggora deal is that Aggora
itself topped a £26.7m turnover in
2016-2017, giving it well enough
financial muscle to set about
acquisitions itself, but founders
Simon Pointon and Doug Thewlis
clearly feel that getting Lockhart’s
considerable backing is the best
move going forwards.
Another member of this exclusive
club is Rippondon-headquartered
JLA, which went on a well-publicised
dealer buyout spree, acquiring“The distributor market is
shaping up to comprise of
fewer, larger players.”CLARE NICHOLLS
EDITORseven distributors in an 18-month
period, including Carford, Comcat
Engineering and Newco Catering
Equipment. However, the servicing
specialist changed tack with its
latest purchase, dipping a toe
in manufacturer waters with its
takeover of DC Products.
Therefore it looks like we are
increasingly in the age of the
‘super distributor’, with very clear
definitions as to which huge groups
can offer which types of services.
Whether JLA’s DC buyout signals a
merging of more manufacturer and
distributor businesses to form a full
cradle to grave commercial kitchen
offering remains to be seen though.
But I would bet that there are a
few independent distributor owners
approaching retirement who are
eyeing up these deals with interest.
If there is no direct succession plan
within a company, then a buyout is a
good way of ensuring the continued
success of the business.PROMEDIA PUBLISHING LTD
16-25 Bastwick Street, London, EC1V 3PS, UK
Tel: +44 (0) 20 31 764228
Fax: +44 (0) 20 31 764231EDITORIAL
EDITOR Clare Nicholls
Tel: +44 (0)20 3176 5657
[email protected]
EDITORIAL DIRECTOR Andrew Seymour
Tel: +44 (0)20 3176 4234
[email protected]
EDITORIAL ASSISTANT Emma Calder
Tel: +44(0)20 3176 4238
[email protected]COMMERCIAL
GROUP COMMERCIAL MANAGER
Anne-Marie Judge
Tel: +44 (0)20 3176 5632
[email protected]
COMMERCIAL MANAGER
Mark Harris
Tel: +44 (0)20 3176 4231
[email protected]
DIGITAL
DATABASE MANAGEMENT
Vinod Alath, [email protected]
PRODUCTION & DISTRIBUTION
GROUP PRODUCTION & DISTRIBUTION
DIRECTOR
Kyle Smith, [email protected]
PRODUCTION & SYSTEMS MANAGER
Danny Corder, [email protected]
OUTSOURCING MANAGER
Aamar Shawwa, aamar.shawwa@ itp.com
CIRCULATION
SUBSCRIPTION CUSTOMER SERVICE
+44 (0)20 3176 4228
[email protected]
Web: http://www.cateringinsight.com
http://www.itppromedia.com
The publishers regret that they cannot accept liability for
error or omissions in this publication, however caused. The
opinions and views contained in this publication are not nec-
essarily those of the publishers. Readers are advised to seek
specialist advice before acting on information contained in
this publication, which is provided for general use and may
not be appropriate for the readers’ particular circumstances.
The ownership of trademarks is acknowledged. No part of
this publication or any part of the contents thereof may be re-
produced, stored in a retrieval system or transmitted in any
form without the permission of the publishers in writing. An
exception is hereby granted for extracts used for the purpose
of fair review.However, all industries have a
cyclical nature and it may be that
these latest unifications will create
room for smaller players to offer a
nimble and independent service as a
contrast to the big beasts who may
not be able to be as reactive any time
there is a significant sector shift.
There should be room for all types.
But to see exactly where the major
kitchen houses stand within the
sector’s financial landscape, Catering
Insight has put together a first of its
kind special report, profiling the top
10 by turnover. Starting on page 16
of this issue, we have set out in detail
who has made the cut and their
performance since 2010. The results
are sure to get the industry talking.
Published by and copyright 2018
Promedia Digital Ltd, incorporated and
registered in the United Kingdom under
company number 10982417.