Foodservice giant Brakes has acquired the chilled food distribution arm of Peter’s Food Service and taken over its contract to supply Compass Group UK outlets with frozen and chilled food.
The deal does not include Peter’s food manufacturing division in Caerphilly or its van sales division.
Problems in the distribution business, which includes a large warehouse in Tamworth, eight satellite depots and a fleet of vehicles, are understood to have contributed to Compass Group’s recent profit warning.
Brakes group chief executive Bill Driscoll said he was confident Brakes could turn things round at Tamworth.