The Campbell Bewley group is poised to make further acquisitions in the US and could spend up to £45 million (€57.13 million) to expand its catering, cafe and restaurant business.
In the coming weeks, Campbell Bewley is expected to announce the acquisition of the US cafe and restaurant business, Java City, for an estimated £20 million and other acquisitions are being considered in that market.
Yesterday the group confirmed its catering division, Campbell Catering, has signed a joint venture agreement with the US multinational, the Aramark Corporation. Together, the two companies will have an annual turnover of £300 million (€380 million) and will employ 11,000 in the Republic and the UK. The two companies collectively have 900 contracts.
In the Republic, it will continue to trade as Campbell Catering and will be managed by the group's chief executive, Mr Dan Cronin. Aramark will also retain its brand in the UK and will be managed by its president, Mr Bill Toner.
Commenting on the deal yesterday, Mr Cronin, said the venture will more than double its UK business and add significant strength to its Irish operations "as we will gain worldwide distribution through the Aramark network". Mr Cronin estimates the group's coffee volumes will increase fourfold as a result of this deal.
The joint venture releases £45 million in cash for the group which will be used to fund further acquisitions with a particular focus in the US.
The group already operates the Rebeccas retail chain in Massachusetts which now has 14 outlets. Mr Cronin said the group's plans to expand its presence in this region are well advanced.
The joint venture allows Campbell Bewley to buy out its Anglo-American venture capital partners, Granville Baird, which owns 15 per cent of its stock. Granville Baird has been seeking to sell that shareholding for some time and had initiated legal action to block the purchase of Java City. This has now been resolved.
Campbell Bewley employs 6,500 and has an annual turnover of £170 million and has been restructuring and expanding the business over the past two years. Last year it invested £9.8 million in its business and relocated its administrative base and bakery to a new plant at the Northern Cross estate between Darndale and Malahide in north Co Dublin.
