Gategroup Officially Announces Acquisition Of LSG Group's European Operations
Following news earlier this week that Lufthansa's supervisory board had approved the sale of the European operations of its airline caterer, LSG, to Switzerland-based Gategroup and that the contract w...
Following news earlier this week that Lufthansa's supervisory board had approved the sale of the European operations of its airline caterer, LSG, to Switzerland-based Gategroup and that the contract would be finalised and signed in the coming days, Gategroup Holding AG has officially announced that it has reached an agreement to acquire the European operations of LSG Group from Deutsche Lufthansa AG.
The transaction sees Gategroup acquire LSG's inflight catering operations in Germany, Switzerland, Netherlands, Belgium, Italy and Spain as well as the global equipment business trading under the Spiriant brand, the European convenience food operations trading under the Evertaste brand, train catering, lounges and the Ringeltaube operations.
As part of the transaction, SWISS International Air Lines has agreed to a further long-term extension of its partnership with Gategroup to deliver its culinary offering to its passengers from Zurich and Geneva.
A long-term catering contract for Lufthansa's German operations has been awarded to Gategroup. Lufthansa and Gategroup will establish a joint venture to service the core hubs in Frankfurt and Munich. Gategroup will introduce a new Lufthansa-dedicated Studio 50/8TM, a culinary think tank and exclusive house of inspiration and co-creation.
Gategroup stated that it is looking forward to further developing LSG's business through investments in core operations as well as in innovative product developments.
Gategroup CEO Xavier Rossinyol commented, "We are delighted to have been recognised as the preferred strategic and operating partner to further advance Lufthansa and LSG's catering operation transformation, inflight concepts and lounge services. At gategroup, we believe there is no better expression of the brand message our customers want to deliver to passengers than the food we create. Our groundbreaking culinary revolution complemented by our focus on data analytics and sustainability will create a holistic and elevated onboard dining experience. We look forward to working closely with LSG's customers, management, employees and their representatives to deliver a swift and successful integration, and we are pleased to welcome the new team to the Gategroup family."
Committed To "Successful Further Development"
Meanwhile, Deutsche Lufthansa AG CFO Ulrik Svensson said, "With Gategroup, we have found a new owner for LSG's European operations whose core business is airline catering and is committed to its successful further development. This will allow us to concentrate on our core business and further invest in our airlines. We will continue along this path and will initiate the sales process for the remaining parts of LSG in early 2020."
"Good, Long-Term Prospects"
Harry Hohmeister, member of the executive board of Deutsche Lufthansa AG and CCO Network Airlines, added, "Gategroup has delivered top quality for SWISS at its Zurich hub for 17 years. I am therefore delighted that we have now entered into long-term catering agreements for the Frankfurt, Munich and Zurich hubs. This provides LSG employees with good, long-term prospects under their new ownership."
The transaction's purchase price remains undisclosed. The transaction is subject to approval by the relevant anti-trust authorities and other pricing and closing conditions. Closing is expected to occur in the first half of 2020.
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.