Deutsche Lufthansa is to divest its European operations of LSG Group to gategroup Holding AG, in a deal expected to close in H1 2020.
The transaction includes LSG’s in-flight catering operations in Germany, Switzerland, Netherlands, Belgium, Italy and Spain as well as the global equipment business trading under the Spiriant brand.
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 also 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 50/8, a culinary think tank and exclusive house of inspiration and co-creation.
“Our groundbreaking culinary revolution complemented by our focus on data analytics and sustainability will create a holistic and elevated onboard dining experience,” said gategroup CEO Xavier Rossinyol. “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,” he continued.
“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,” said Ulrik Svensson, CFO of Deutsche Lufthansa AG.
