Activist hedge fund Irenic Capital Management is pushing private equity firms to consider a takeover of London-listed SSP Group after raising its stake in the food-to-go operator to around 3%, the Financial Times reports.

The New York-based fund, co-founded in 2021 by Elliott Management alumnus Adam Katz, has circulated pitch materials to potential bidders and advisers, suggesting SSP could fetch a 50% premium in a leveraged buyout.

Irenic highlights SSP’s predictable revenues, scope for growth in US airport concessions, and capacity to unlock capital through asset sales, including its £1.48bn stake in Indian joint venture Travel Food Services. SSP’s current market value stands at £1.25bn.

The company, which operates Upper Crust, Caffè Ritazza, and franchised outlets of M&S Simply Food and Burger King, has struggled to recover from the pandemic amid sluggish UK rail travel. Operating margins dropped to 2.7% in the six months to March, down from 5% in 2019.

The move echoes Irenic’s 2023 campaign at The Restaurant Group, which culminated in a £506m sale to Apollo Global Management.

SSP said: “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.”

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