Clayton, Dubilier & Rice, one the world’s oldest private equity firms, yesterday confirmed that it has an ongoing interest in bidding for SSP, the £1.4 billion transport catering business which has been put up for sale by Compass, the troubled catering group.

Speculation had emerged at the weekend that bidders may be put off by news that as part of the deal the buyer will have to purchase all its supplies from Compass for the next five years.

But Clayton Dubilier & Rice said yesterday that it had not been put off bidding by this agreement.

Joe Rice, one of the founding partners of Clayton Dubilier & Rice told The Times at the World Economic Forum in Davos that he regarded the group’s real estate assets, many of which are located in prime sites in transport hubs including rail stations, motorway service stations and airports, as just as important as the food the company sells.

SSP’s brands include Caffe Ritazza and the Upper Crust sandwich chain.

"The real estate aspects of the deal are just as important as the food that is sold" Mr Rice said. "Location is key," he added.

However, property rents for prime shopping and catering outlets in airports, where captive customers have restricted choice and time and are more likely to purchase goods, are rising as airport owners seek to cash in on their real estate potential. A private equity bidder would need to take a view on the future rental agreements that it may be able to strike with airport owners.

Clayton Dubilier & Rice faces competition for the deal from Macquarie Bank, the Australian group which is also bidding for the London Stock Exchange; Terra Firma, the buyout group led by Guy Hands; and BC Partners, the venture capital group.

Autogrill, the Italian service station operator which is majority-owned by the Benetton family, is also thought to be shortlisted and Elior, the French catering group, is reported to be in discussions with one or more of the financial buyers about a potential joint bid.

Mr Rice said that it whether Clayton Dubilier & Rice won the auction would depend on whether another bidder "wanted it more".

Clayton Dubilier & Rice has recently raised a new U$4 billion fund. In September, the group teamed in September with Carlyle Group in Washington and the private equity unit of Merrill Lynch to buy Hertz, the car rental company based in Park Ridge, New Jersey, for $15 billion.

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