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Catering & Onboard Retail

Gategroup acquires LSG’s European catering operations

Adam GavineBy Adam GavineDecember 10, 20192 Mins Read
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Gategroup Holding AG (“Gategroup”) has reached an agreement for a takeover of the European business of Deutsche Lufthansa AG (“Lufthansa”) subsidiary, LSG Group (“LSG”). The agreement – for an undisclosed purchase price – comprises LSG’s on-board operating business in Germany, Switzerland, the Netherlands, Belgium, Italy and Spain, as well as its global equipment business under the Spiriant brand, its European convenience food business, train catering, lounges and Lufthansa employee markets under the Ringeltaube brand.

According to Ulrik Svensson, CFO of Lufthansa, the partners will also start the sale of LSG’s business outside Europe in 2020.

The deal also sees Gategroup receive a long-term catering contract for Lufthansa’s German business. Lufthansa and Gategroup will establish a joint venture at the central hubs of Frankfurt and Munich, which will launch Studio 50/8TM, a ‘culinary think tank’ for inflight meals that aims to set a new airline catering standard for Lufthansa.

Swiss International Air Lines is also positive about the takeover, and has decided to continue its partnership with Gategroup with a long-term catering contract extension for passengers at its Zurich and Geneva hubs.

Gategroup has stated that it aims to further develop LSG’s business through targeted investments in core services and product developments. The aim of the joint venture is to provide Lufthansa passengers with a new customer experience and to enhance the potential of LSG’s European business, including a focus on sustainability and operational efficiency.

“We are convinced that our culinary creations are the best way for our airline customers to underline their brand promise to passengers. We have therefore embarked on nothing less than a culinary revolution to create a holistic, upscale dining experience on board based on data analysis and sustainability,” stated Xavier Rossinyol, CEO of Gategroup. “We look forward to welcoming the LSG team to the Gategroup family and working closely with LSG’s customers and employees, management and employee representatives in the future to achieve rapid and successful integration.”

The transaction is subject to approval by the relevant antitrust authorities and other price and closing conditions. The transaction is expected to close in the first half of 2020.

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Adam Gavine
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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 events and awards panels, including the Crystal Cabin Awards, and the Airline Passenger Experience Association (APEX) & International Flight Services Association (IFSA) Awards

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