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Gategroup completes acquisition of LSG Europe

Adam GavineBy Adam GavineDecember 8, 20202 Mins Read
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Gategroup has completed the acquisition of the European operations of LSG Group from Deutsche Lufthansa AG (“Lufthansa”). The transaction reinforces Gategroup’s core business, with the deal comprising 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.

The value of the acquisition is undisclosed, but in 2019, the acquired LSG Europe assets generated revenues in an amount of EUR 1,112m and employed 7,750 colleagues.

“We are thrilled to have reached this important milestone,” stated 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.”

The deal will see Gategroup introduce a new Lufthansa-dedicated Studio 50/8, a “culinary think tank” and forum for inspiration which will work to enhance the end-to-end customer experience.

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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Adam loves air travel, and since taking on the Aircraft Interiors International brand he has really enjoyed the opportunity to be involved with the latest aircraft and airline products before they are even launched. Adam co-ordinates the growth of the brand platform, and sits on various panels, including the Crystal Cabin Awards

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