Michael Bailey has announced his return to the $130 billion foodservice industry with three acquisitions through the newly formed TrustHouse Services Group, Inc. The former CEO of the $20 billion Compass Group PLC had been pursuing other personal and professional interests, since retiring from that position two years ago.
Parker Poe Adams & Bernstein LLP acted as legal counsel in the structuring of the new company and in its acquisitions of Aladdin Food Management Services, Fitz Vogt & Associates, and AmeriServe Food Service Management.
Bailey, who will serve as CEO of TrustHouse, has a significant equity interest in the company. The other principal equity holder is his investment partner Gryphon Investors, a San Francisco-based private equity firm. Independent investment banking firm McColl Partners was the financial advisor in the transactions.
Based in Charlotte, North Carolina, TrustHouse will principally target the healthcare and education markets. As a result of the acquisitions, it begins operations serving clients in more than 20 New England, Midwestern and Mid-Atlantic states. Based on last year’s revenues of the acquired entities, TrustHouse is already among the top 20 companies in the contract foodservice market.
In a news release announcing the acquisitions, Bailey said, “There is a strong demand in the market for an entrepreneurial contract foodservices firm of scale that is focused on the healthcare and education markets.”
The head of Gryphon’s Business Services practice, Nick Orum, stated, “We look forward to helping him (Mr. Bailey) build the business and supporting its growth, both organically and through add-on acquisitions.”
Parker Poe will continue to represent TrustHouse in its ongoing operations and future acquisitions. Attorneys of the firm’s Corporate & Securities, Employment & Benefits, Tax and other practices counseled TrustHouse in its initial acquisitions.
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