Centerplate Inc. is growing its portion and extending its menu in Beantown.
The Stamford-based arena-scale food and hospitality supplier has finalized its merger with another food services giant, Boston Culinary Group.
Centerplate is a hospitality partner to hundreds of convention centers and sports venues nationwide. Centerplate is owned by private equity firm Kohlberg & Co. The price of the transaction between the two private companies, which includes cash, stock, and options, was not disclosed. Both Centerplate and Boston Culinary Group, based in Cambirdge, Mass., said it would be less than the $210 million Kohlberg had paid for Centerplate a year ago.
The Boston Culinary Group is a 40-year-old business.
Joseph O’Donnell, founder and chairman of Boston Culinary Group, will serve as chairman of Centerplate’s board of directors.
“Fifteen years ago, there were a hundred private companies like mine,” said O”™Donnell.
O”™Donnell said for years his business has been the last of many that were either swallowed up or went out of business.
“I ended up being the last Mohican with a company that had 17,000 employees operating in 35 or 38 states,” said O”™Donnell. “This is the next chapter in our history.”
O’Donnell said with the addition of Boston Culinary Group’s venue partners, including 12 university accounts, 15 ski resorts, and professional sports stadiums and convention centers, Centerplate now boasts a roster of more than 250 premier venues across North America.
“By entering into this strategic merger with Boston Culinary Group, we have made a great stride today toward achieving our goal of becoming No. 1 in hospitality,” said Des Hague, president and CEO of Centerplate. “We look forward to serving our new venue partners with an unmatched level of commitment, delivering extraordinary experiences for their guests and ultimately driving total returns.”
O”™Donnell said combined company will not only be larger, with about 30,000 employees and $1 billion in annual revenues, but more diversified. Boston Culinary”™s field employees are unaffected by the merger, but about 40 headquarters jobs will be cut.
“We are thrilled to join Centerplate in continuing our legacy of combining culinary expertise with genuine customer service,” said O’Donnell. “Over the years, we have established a strong foundation based on hard work and dedication, and we are excited to continue building our business with Centerplate.”
