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Host America completes sale of foodservice operations

HAMDEN Conn. Shareholders of Host America Corp., the foodservice management and energy services provider, voted on Oct. 19 in favor of the aggregate $3.7 million sale of virtually all of the company’s dining assets to purchasers Host America Corporate Dining Inc. and Lindley Acquisition Corp., the company said Monday.

Host America also said it would change its name to EnerLume Energy Management Corp. on Oct. 27 to reflect its repositioning as a provider solely of energy services.

The transaction for the company’s foodservice divisions included the $1.2 million sale of the Corporate Dining Division, which specializes in the management of corporate dining rooms, cafeterias and other services like special event catering and office coffee services, as well as the $2.5 million sale of the Lindley Food Services subsidiary that engages in contract packaging, school meals and senior feeding services.

The sale of the corporate dining arm to Host America Corporate Dining Inc. is expected to close Oct. 25, and the sale of its Lindley Food Service business to Lindley Acquisition Corp. will close Oct. 26, the company said. Head executives at both those divisions are expected to remain with the foodservice companies, according to corporate filings with regulators.

Host America had said in April that it planned to focus on its energy division and would sell off its food businesses. At the time, however, the company had been involved in a U.S. Securities and Exchange Commission probe, which has since been terminated without penalty, although the company did settle for $2.4 million a class-action lawsuit related to the probe.

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