Despite turbulence in the travel sector, gategroup has announced the completion of the acquisition of the European operations of LSG Group from Lufthansa.
The completed acquisition comprises LSG’s inflight catering operations in Germany, Switzerland, the Netherlands, Belgium, Italy and Spain as well as the global equipment business trading under the SPIRIANT brand. It also includes the European convenience food operations trading under the Evertaste brand, the Ringeltaube retail outlets as well as its European train catering and lounge operations.
“We are thrilled to have reached this important milestone,” says gategroup CEO Xavier Rossinyol. “The substantial economic challenges brought about by the COVID-19 pandemic required a high degree of flexibility, partnership and trust of all parties involved. We are pleased to have found a viable path forward allowing us to complete the transaction at terms acceptable to both, Lufthansa and gategroup.”
With the acquisition of LSG Europe, gategroup reinforces the core of its business, benefitting employees, customers and shareholders alike. The expertise and capabilities of the two companies perfectly complement each other, benefiting from the other’s expertise, innovative power, culinary and operational excellence. For instance, gategroup will introduce a new Lufthansa-dedicated Studio 50/8TM*, a culinary think tank and exclusive house of inspiration. This is one example which shows the joint passion and commitment of Lufthansa and gategroup to enhance customer experience from end-to-end and with this, defining a new airline catering industry standard.
Rossinyol continues: “Together with our new colleagues, we will find the best way to navigate through these challenging times for our industry and emerge from the crisis with renewed strength. We warmly welcome our new colleagues to gategroup. We look forward to working with them to jointly create the future of exciting culinary and retail experiences for our customers and their passengers.”
In 2019, the acquired LSG Europe assets generated revenues in an amount of EUR 1,112m and employed 7,750 colleagues.
This closing completes the transaction, which was announced on 9 December 2019, following its approval by the EU Commission. In compliance with its commitments to the European Union, gategroup has signed binding agreements to divest parts of its existing German inflight catering operations, a minority interest in an inflight catering kitchen at Brussels airport and some catering assets at Rome (FCO) and Paris (CDG) airports. gategroup expects to complete the divestments in Q1/2021.
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