Sovereign Capital completes £14 million buy-out of Lindley Catering - first investment from new fund

Sovereign Capital Partners LLP ("Sovereign Capital"), the independent lower mid-market UK private equity provider, announces that it has completed the £14 million buy-out of Lindley Catering Limited ("Lindley"), the UK's leading provider of contracted catering to sports stadia. This is the first investment from Sovereign's latest fund, which closed in May at £275 million.

Based in Stoke-on-Trent, Lindley provides both public and executive catering to organisations throughout the UK. The 32 football clubs to whom Lindley is contracted include premiership clubs Manchester City and Celtic FC; Lindley also provides catering to several cricket and rugby clubs. Led by Alex McCrindle as CEO, Paul Biffen as Sales and Marketing Director and David Hulme as FD, Lindley plans to increase its market share by winning more contracts in both mainstream and niche sports facilities and through acquiring complementary businesses. Sovereign, in addition to new finance, will deploy its expertise in buy & build, investing in support of management's objectives.

Growth for contracted-out catering services is forecast to continue in this sector as the trend towards outsourcing increases and as stadia have more opportunity to host an increasingly diverse range of functions from pop concerts to conferences. In the non-sports sector, Lindley is also operating in theatre and further opportunities exist for the company at other venues, including Exhibition and Conference Centres.

Commenting on the transaction, Andrew Hayden, Partner, Sovereign Capital said: "Lindley has established a reputation for high standards of quality and has built a market leading business in a niche sector. The management team have all the skills to take advantage of the opportunities for growth both within and beyond the market and we believe Lindley will build upon its strengths and reputation to become a substantial UK business."

Alex McCrindle commented: "We are delighted to have Sovereign as a partner in supporting Lindley to the next level of growth. Sovereign has significant experience of working with support service businesses, understands the market opportunities and will be able to support our strategy for both acquisitive and organic expansion."

John Hustler, Clearwater Corporate Finance said "We were delighted to work alongside Sovereign Capital in delivering this transaction. Under the stewardship of the current management team Lindley has established an enviable position and is well poised for further growth with the backing of its new investors."

Lindley has been acquired from a group of shareholders, led by Leisure & Media VCT plc*. Debt for the transaction has been structured by Martin Cordey and Alistair Pendleton of Lloyds TSB Acquisition Finance, Birmingham. Andrew Hayden and Simon Hitchcock of Sovereign Capital have joined the Board of Lindley Catering.