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Gryphon Investors to sell TrustHouse Services Group to France’s Elior

Gryphon Investors, a San Francisco-based private equity firm, has entered into a definitive agreement to sell its portfolio company, TrustHouse Services Group, to Elior SCA , a provider of contract and concessions catering headquartered in Paris, France.

 
Elior is partnering with its two main shareholders and TrustHouse’s management for the acquisition. TrustHouse is the largest pure-play contract food service (CFS) provider in the US focused on the healthcare, education and corrections sectors.
 
The transaction is expected to close early in the second quarter. Terms of the transaction have not been disclosed.
 
In partnership with Michael J Bailey, the former chief executive of Compass Group, Gryphon formed TrustHouse in March of 2008, as a result of an initiative targeting the fragmented CFS sector in the healthcare, education and corrections end-markets. During Gryphon’s ownership, Bailey and management led organic growth initiatives and integrated three acquisitions, resulting in operations expanding from 22 to 45 states and in EBITDA more than quadrupling.
 
“We congratulate Mike and the TrustHouse team on achieving the objective of building a truly differentiated sector leader, and on signing a definitive agreement to sell the company to Elior. Thanks to their considerable efforts, there was significant value creation for all stakeholders, including our limited partners,” says Nick Orum, Gryphon’s president.
 
Bailey says: “Gryphon has been a valuable partner and I appreciate their support of the original vision, including our organic growth plans and acquisition strategy. Despite the challenging economic conditions early on, we were successful in executing our investment thesis of building a leading CFS platform. We are enthusiastic about partnering with Elior and believe we are well positioned for our next phase of growth.”
 
In connection with the transaction, Jefferies & Company acted as lead financial adviser and McColl Partners acted as a financial adviser to TrustHouse and Gryphon. Kirkland and Ellis and Parker Poe provided legal counsel to Gryphon and TrustHouse.
 
The closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals.

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