Shares of SSP Group rose sharply on Thursday after a Financial Times report that activist hedge fund Irenic Capital Management is exploring a potential take-private deal for the UK-listed food and beverage operator.
The Upper Crust owner’s stock jumped as much as 9.9% in early London trading, making it the second-highest gainer on the FTSE 250 index.
By mid-morning, the shares pared some of the gains but remained 6.5% higher.
Hedge fund builds case for private equity interest
The Financial Times reported that New York-based Irenic Capital has been encouraging private equity groups to consider takeover bids for SSP.
According to the newspaper, Irenic has prepared a pitch deck highlighting the company’s appeal, including its predictable revenues, expansion opportunities in US airports, and the potential to raise capital through the sale of non-core assets.
Those assets include SSP’s stake in a listed Indian joint venture, which Irenic has suggested could help finance a leveraged buyout.
The hedge fund has reportedly shared its materials with investment bankers and private capital firms in recent weeks.
Irenic, founded in 2021 by Adam Katz, formerly of Elliott Investment Management, and Andy Dodge, a former partner at Indaba Capital Management, has built a reputation for strategic activism.
Rather than outright confrontation, the firm typically pushes for portfolio reshaping through spin-offs and targeted divestitures.
Company response and strategic priorities
An SSP spokesperson told Reuters that the company welcomes investor feedback but remains focused on delivering its existing strategy.
“We welcome the feedback and views of all our investors. We are entirely focused on delivering progress against our clear strategic priorities in order to deliver sustainable growth and returns for all of SSP’s stakeholders,” an SSP spokesperson told the news agency.
The London-headquartered company specialises in operating cafes, bars, and restaurants in travel locations, including airports, train stations, and service areas.
It runs a mix of proprietary and franchised brands across more than 35 countries.
Mixed trading performance across regions
Earlier this summer, SSP reported mixed results across its regions.
Group sales rose in the fiscal third quarter, though performance in North America weakened due to lower passenger numbers linked to geopolitical events affecting air travel in late spring and early summer.
Like-for-like sales in the region declined 2% year-on-year, though on a constant currency basis, sales rose 5%, supported by net gains.
UK sales were stronger, rising 7% on the back of robust like-for-like trading and seasonal boosts such as the Easter holiday.
In continental Europe, sales were flat, reflecting weaker consumer spending and challenges in the rail sector.
SSP also booked the impact of exiting its German management services business and the removal of reported sales from its joint venture in India.
The company reaffirmed its full-year guidance, forecasting revenue of between £3.7 billion and £3.8 billion, compared with £3.43 billion last year.
Management also pointed to momentum at the start of the fourth quarter and ongoing cost efficiency measures.
Broader context for UK-listed firms
The latest move by Irenic comes at a time when UK-listed mid-cap companies are drawing increased interest from activist investors and buyout funds.
Depressed valuations in London relative to other markets have prompted speculation of further take-private deals, particularly in consumer-facing sectors.
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