Sale of LSG Europe completed
gategroup meets all requirements of the EU Commission and receives green light to take over LSG's European business
In December 2019, Lufthansa Group and gategroup concluded a purchase agreement for the European operations of LSG Group. This accounts for about one third of LSG Group's total business. gategroup now meets all requirements of the European Commission. Thus, the purchase agreement could now be executed, the so-called "Closing" has taken place. Both parties have agreed not to disclose the financial details of the transaction.
In addition to the European catering businesses, the purchase agreement also covers the lounge and train business and the retail convenience food brand Evertaste and its European facilities, the equipment business SPIRIANT and the retail stores of the "Ringeltaube" brand.
gategroup is a long-term partner for catering and services in Frankfurt, Munich and Zurich. Lufthansa will retain a minority stake in the Frankfurt and Munich catering facilities, which provide in-flight service for Lufthansa flights. This ensures a seamless transition of the catering business and a successful start of the cooperation. gategroup will introduce a new Lufthansa-dedicated Studio 50/8TM*, a culinary think tank and exclusive house of inspiration and co-creation which will set a new airline catering industry standard.
Carsten Spohr, CEO of Deutsche Lufthansa AG, said: "With the sale of LSG's European business to gategroup, we are setting another milestone in the restructuring of the Lufthansa Group. We are focusing more strongly on our core airline business, we are becoming leaner, more efficient and reducing the Group's internal complexity. My sincere thanks go to the 7,500 employees who are now joining gategroup. They have led our catering business in Europe to success in recent years and will continue to indulge Lufthansa guests with premium catering under the leadership of gategroup.”
Lufthansa Group continues to aim to sell the remaining international part of LSG Group as soon as the general conditions allow.