Lindley and Heathcotes join to create new force in the Sports and Leisure Food Services market

Sovereign Capital, the independent lower mid-market UK private equity provider, announces that portfolio company Lindley Catering Limited ("Lindley"), has joined forces with Heathcotes Outside ("Heathcotes") to create one of the UK's leading catering companies to the leisure industry with a turnover in excess of £40 million. Sovereign Capital provided all of the funding for the transaction. Each business will continue to operate under its own brand name.

Sovereign Capital originally supported Lindley, the UK's leading provider of contracted catering to sports stadia, in a £14 million buy-out in July 2005. This latest announcement reflects Sovereign Capital's continued commitment to deploy its expertise in buy & build, investing in support of management's objectives.

Heathcotes is a successful Sports Stadia and Event Catering Company providing a high quality service to its clients. Contracts include Chester and Bangor racecourses, Preston North End FC and Warrington Wolves. Paul Heathcote is a renowned restaurateur with accolades including a Michelin Star and Egon Ronay Chef of the Year. It is qualities such as these that have contributed to the company's success.

Alex McCrindle, Chief Executive, Lindley said:

"The combination of the skills of both companies will enable us to play to our particular strengths forming a catering company that can service hospitality at all levels both locally and nationally. The enhanced group has the infrastructure, products and skills to grow in existing and new markets and to continue to provide clients with a high level of quality food service delivery."

Simon Hitchcock, Director, Sovereign Capital commented:

"Both Lindley and Heathcotes have established reputations for high standards and quality. Together they are well positioned to further take advantage of the market opportunity that exists. Sovereign has significant experience of working with support service businesses, and will continue to support the strategy for both acquisitive and organic expansion."