Gategroup Holding AG has announced it has reached an agreement to acquire the European operations of LSG Group from Deutsche Lufthansa AG.
The transaction comprises of 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 successful partnership with gategroup to deliver its distinctive 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 which will set a new airline catering industry standard.
Gategroup looks forward to further developing LSG’s business through investments in core operations as well as in innovative product developments. The joint venture will deliver an exciting new customer experience to Lufthansa’s passengers, unleashing LSG Europe’s potential through the combined expertise, innovation capabilities, focus on sustainability and operational excellence of gategroup and LSG Europe.
The integration process will bring the combined expertise and complementary capabilities into ONE group with members of LSG Europe’s management, employees and their representatives playing a key role following completion of the transaction.
Gategroup CEO Xavier Rossinyol said, “We are delighted to have been recognized 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.'
Ulrik Svensson, CFO of Deutsche Lufthansa AG, 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.'
'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,' says Harry Hohmeister, Member of the Executive Board of Deutsche Lufthansa AG and CCO Network Airlines.'
The 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 in H1 2020.