Catering giant, Compass has announced it will buy back a possible £300m of its own shares after agreeing to sell Travelodge and Little Chef because they did not fit in with their other businesses such as the Upper Crust sandwich chain.
A private equity investor, Permira is to buy the businesses following an auction deal that began in June while Compass said that £10m of the purchase price would be deferred for up to two years.
Under franchise negotiations, Compass will continue to use the Little Chef brand in its motorway service stations while Permira will carry on using the Harry Ramsden's name on fish and chips at Little Chef.
The deal is expected to be completed by the end of the month.
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