The Lufthansa Group and gategroup concluded a purchase agreement for the European business of the LSG Group. The parties have agreed not to divulge the financial details of the transaction. The sale is also subject to the approval of the relevant competition authorities.
In addition to the LSG Group’s European catering operations, the purchase agreement extends to its lounge business, retail convenience food specialist Evertaste, the SPIRIANT equipment business and the retail outlets and operations of the Ringeltaube brand.
The businesses concerned currently employ some 7,100 personnel and generated revenues of around EUR 1.1 billion last year – about a third of the LSG Group’s total revenue volume. The transaction will not have any major impact on the EBIT or the net profit of the Lufthansa Group for 2019 or 2020.
“In gategroup we have found a new owner for LSG’s European business which has catering as its core activity,” says Carsten Spohr, Chairman of the Executive Board & Chief Executive Officer of Deutsche Lufthansa AG. “This gives the European part of LSG far better future investment prospects and further development opportunities.”
“At the same time,” Spohr continues, “this transaction marks the beginning of a long-term partnership between gategroup and the Lufthansa Group which will focus on catering our premium airlines at our Frankfurt, Munich and Zurich hubs. This ensures a high level of job security at these locations and our customers can continue to expect the highest quality of gastronomic experience on board.”
One part of the purchase agreement which was signed today consists of a long-term contract for gategroup to cater flights at the Lufthansa Group’s Frankfurt, Munich and Zurich hubs. For the Frankfurt and Munich operations which provide catering for Lufthansa flights, Lufthansa will retain a minority shareholding in a new joint venture company. The arrangement will ensure a smooth and seamless handover of the businesses concerned, along with a successful start to the new collaboration.
The sale of the remaining part of the LSG Group should be initiated early next year.
“We have demonstrated in the past that we can successfully integrate new companies. By combining the competencies of LSG and gategroup, we can offer a unique passenger experience based on culinary excellence and innovation. With the creation of a new Lufthansa-dedicated culinary studio and think tank, we will continue to develop our unique offering for passengers together with Lufthansa,” says Xavier Rossinyol, CEO gategroup. “This will firmly anchor an innovative, premium in-flight service for Lufthansa.”