Elior signs agreement to purchase Preferred Meals

Elior Group, a US-based company operating in the contracted food segment, has signed an agreement through its subsidiary, Elior North America, to purchase Preferred Meals, an Illinois-based provider of meals, and frozen and fresh prepared snacks for the contract catering market.

Operational since 1967, Preferred Meals is operational in 30 states across the US. The company generated revenues of $225m in fiscal 2015.

Elior Group chairman and CEO Philippe Salle said: "This acquisition is part of the company’s 2016-2020 strategic plan to accelerate development within growing markets."

Preferred Meals will operate under its current brand as part of the Elior North America group of companies, and will be led by George Chivari, its current president and CEO.

Chivari will report to Elior North America president and CEO Brian Poplin.

Preferred Meals’ 1,600 employees will be retained following the closure of the deal, which is expected within 90 days.

Poplin said: "The addition of Preferred Meals to our portfolio takes us deeper into markets we currently serve and expands our offerings into new areas."

The purchase will bolster Elior North America’s production and distribution channels, adding 13 distribution centres across the US.