Executive chef Touvai ‘Tee’ Poloniati has left SkyCity for Ovation. Photo / SkyCity
Executive chef Touvai ‘Tee’ Poloniati has left SkyCity for Ovation. Photo / SkyCity
The New Zealand hospitality services division of ASX-listed Downer EDI has been sold to a newly formed Australian-owned company which has taken control of Spotless Catering and other businesses here.
Patrick McCartney, Auckland-based chief executive of Ovation Hospitality Services NZ, confirmed the purchase this morning but no price was announced.
“New hospitality contender, Ovation Hospitality Services NZ, has acquired the New Zealand hospitality services division of Downer EDI,” he said.
“Better-known by the trading names of Spotless Catering, Alliance and Epicure, the business has a long track record of serving Aotearoa with event, corporate and retail catering services.”
Clients include Go Media Stadium, Auckland Botanic Gardens, Toyota NZ, Foodstuffs (NZ), Health NZ, Christ’s College, Whanganui Collegiate School and Northbridge Lifecare Trust, the statement said.
Patrick McCartney of the business which bought Spotless in New Zealand. Photo / Ovation Hospitality Services
McCartney said the New Zealand businesses Ovation had bought employed 1250 management and staff.
Ovation, incorporated in April, is wholly owned by Australia’s Doltone Hospitality Group which owns Sydney’s Doltone House.
The Australian Financial Review today said Downer boss Peter Tompkins had agreed terms to sell the Spotless New Zealand catering business to the Signorelli family’s Doltone Hospitality Group.
The AFR said that group was “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”.
Doltone is an events and hospitality business running since 1969.
Ovation Hospitality is based at St Georges Bay Rd in Parnell.
The group’s executive chef is Touvai ‘Tee’ Poloniati, will oversee the leadership, management and coordination of culinary operations.
McCartney said the businesses Ovation had bought gave it an instant presence in strategically important sectors such as education, hospitals, stadiums, government, healthcare and senior living.
“With all 1250 management and staff coming across, the transition has been smooth, with easy wins readily identified by the re-energised team.
“Moreover, we’re already impressed by the many decades of Kiwi experience dealing with major clients and view this as transferable know-how, capable of export to Australia,” he said.
Both companies have 15-year open syndicated contracts with two five-year renewal provisions with the Government, according to Glenn Campbell of Otago-based commercial cleaning firm House of Hygiene who complained about the foreign businesses dominating.
Downer bought Spotless last decade but the deal was not popular with everyone.
The Herald in 2017 reported that Grant Fenn, then Downer chief executive, announced the A$1.2 billion takeover which left the market gobsmacked at the bid and immediately wiped 25% off the value of Downer’s shares.
A Downer NZ spokesperson said today the business was “exiting the New Zealand-based standalone hospitality and event catering as part of the company’s ongoing commitment to simplifying its portfolio and focusing on core markets”.
Downer EDI has been trading on the ASX around A$5.75, giving it a market cap of A$3.87b.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
