The outsourcing group Mitie will continue its transformation this week with a £90m deal to offload a controlling stake in Gather & Gather, its catering arm, amid continued political pressure on the industry.

Sky News has learnt that Mitie will announce plans to sell a majority shareholding in the unit to CH&CO, a contract caterer which holds a royal warrant from The Queen.

The deal, which is expected to be announced to the London Stock Exchange on Monday morning, will see Mitie retaining a minority stake in the combined business.

Industry sources said that Gather & Gather’s management team was likely to continue running its contracts under CH&CO’s ownership, underlining the importance to Mitie of retaining a strategic interest in the operation.

CH&CO, which is part-owned by Equistone, the private equity firm, is understood to have identified the acquisition of a controlling stake in the Mitie division as a way of accelerating its growth.

The deal represents the latest attempt‎ by Mitie’s chief executive, Phil Bentley, to reshape the company during a period of continuing pressure on the outsourcing sector.

Earlier this year, rival Interserve briefly fell into administration before being taken over by a consortium of banks and hedge funds‎.

Mitie has considered a bid for Interserve’s support services unit, which if completed would create a business employing close to 100,000 people in the UK.

There are no current talks between the two companies.

Mitie, which employs about 56,000 people in Britain, has rebuilt its financial and operational credibility under Mr Bentley, who ran British Gas and then Cable & Wireless Communications before joining the outsourcer in 2016.

Its shares have risen about 10% during the last 12 months, outperforming most of Mitie’s rivals in a market dogged by protracted concerns about outsourcers’ finances.

The collapse of Carillion last year was a major factor in fuelling those concerns and prompted the Labour Party‎ to pledge a crackdown on the sector if it wins power at the next general election.

Mitie has also explored the sale of other divisions including its landscaping services and social housing businesses but without progressing to a deal because of insufficiently attractive offers.

On Friday, Mitie shares closed at 159p, giving it a market capitalisation of just over £580m.

Mitie declined to comment on Sunday night.

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