Gryphon Investors agrees to sell TrustHouse Services Group to France's Elior

  Gryphon Investors agrees to sell TrustHouse Services Group to France's Elior

Business Wire

SAN FRANCISCO -- March 18, 2013

Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm,
announced today that it has entered into a definitive agreement to sell its
portfolio company, TrustHouse Services Group (“TrustHouse”), to Elior SCA
(“Elior”), a prominent 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 U.S.
focused on the healthcare, education and corrections sectors. The transaction
is expected to close early in the second quarter. Terms of the transaction
were not disclosed.

In partnership with Michael J. Bailey, the former CEO of Compass Group,
Gryphon formed TrustHouse in March of 2008, as a result of an initiative
targeting the fragmented CFS sector in the attractive and under-penetrated
healthcare, education and corrections end-markets. During Gryphon’s ownership,
Mr. 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,” said Nick Orum, Gryphon’s

Mr. Bailey, the CEO of TrustHouse, said, “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.”

Keith Stimson, a Gryphon Partner and the head of Gryphon’s Consumer Products
and Services Group, noted, “The agreement to sell TrustHouse represents the
culmination of a successful five-year partnership with Mike Bailey and the
TrustHouse team and further bolsters Gryphon’s strong track record in the food
and facility services sectors. We have enjoyed working with TrustHouse, and
thank Mike for his leadership in successfully building a national platform in
the growing market for contract food service in the healthcare, education and
corrections sectors. We believe TrustHouse will continue to thrive as a market
leader in partnership with Elior.”

In connection with the transaction, Jefferies & Company, Inc. acted as lead
financial advisor and McColl Partners, LLC acted as a financial advisor 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.

About TrustHouse Services Group

TrustHouse Services Group ( is a leading food
service provider focused on the healthcare, education and corrections sectors.
TrustHouse manages over 675 client accounts across 45 states. Divisions of
TrustHouse include Aladdin Food Management based in Wheeling, WV; AmeriServe
Food Management headquartered in Columbia, MO; Fitz Vogt & Associates located
in Walpole, NH; A’viands, LLC in Minneapolis, MN; Lindley Food Services
located in New Haven, CT; and Valley Services, Inc. located in Jackson, MS.
TrustHouse is headquartered in Charlotte, NC and was founded in 2008 by Mike
Bailey and Gryphon Investors, a San Francisco-based premier middle-market
private equity firm.

About Gryphon Investors

Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions
of, and growth investments in, middle-market companies in partnership with
experienced management. Having committed more than $1 billion of discretionary
equity capital, Gryphon has an extensive track record of investing $35 to $100
million of its own capital in companies with sales ranging from $50 to $250
million. Gryphon prioritizes investment opportunities where it can form
proactive partnerships with owners and executives to build leading companies,
utilizing Gryphon’s capital, professional resources and significant financial
and operational expertise. Visit for more


For TrustHouse:
Michael J. Bailey, 704-424-1071
For Gryphon:
Caroline Luz, 203-656-2829
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