Eaton Group, the London-based business and industry caterer, has been bought by ISS Facility Services for £15m after four months of negotiations.
Multi-service provider ISS has a turnover of £420m and employs 42,000 people in the UK. Until now it has provided catering primarily in the healthcare sector.
The acquisition of Eaton signals ISS's entrance into new markets for its range of services, which include catering, cleaning, reception, and building maintenance.
David Weddell, managing director of ISS Business Support Services, will assume responsibility for Eaton's operations. "With the Eaton Group we have the perfect platform to grow not only single-service catering but our fully integrated facility services offering."
Eaton managing director Rebecca Thomas and chief executive Rodney Widdowson transfer to ISS's payroll. Chairman Peter Chaning-Cotter has decided to retire.
In total 600 Eaton staff will transfer to ISS. Eaton provides staff and public restaurants, deli concepts, executive dining, and conference and banqueting services with a strong presence in the City.
Its 90 contracts include the Royal Society, European bank Société Générale, the Competition Commission and the Institute of Chartered Accountants.
Eaton Group has an annual turnover of £22m. The takeover bumps up ISS's annual catering sales to £90m.