Downer exits Spotless catering biz | Na vitas secures equity injection | WSG’s myst ery HK bidder

Good evening,

The $3.9 billion Downer EDI has boarded up the food truck and is reversing out of the business of hawking hotdogs and beers at sports stadiums and the like.

Street Talk can reveal Downer boss Peter Tompkins has agreed terms to offload the Spotless New Zealand catering business to the Signorelli family’s Doltone Hospitality Group, best known for its namesake Doltone House in Sydney’s Hyde Park and more recently, for redeveloping the food precinct at the 190-year-old Paddy’s Markets.

Under the deal, Doltone Hospitality will acquire the Spotless Catering, Alliance and Epicure brands, whose 1200 staff provide catering to about 35 events, corporates and retail venues across New Zealand.

Sources said the acquisition includes contracts with the likes of Auckland’s Go Media Stadium, which has hosted superstars such as Taylor Swift and Coldplay and sees 500,000 visitors a year, as well as Auckland Botanic Gardens, Health NZ, Toyota NZ and Foodstuffs.

Downer and Doltone House declined to comment when contacted by Street Talk on Sunday. The ASX-listed contractor was advised by investment bank Barrenjoey, while the Signorellis’ long-time adviser is Maurizio Zappacosta of ZM Partners. The deal is due to be announced on the ASX this week.

Read the full story tomorrow and more on the Street Talk page.

The Australian sharemarket edged lower on Friday paring gains earlier in the week that pushed the bourse to set two record highs.

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