The Lufthansa air group will put on sale in 2020 the assets of the LSG catering service that are not included in the transaction agreed with Gategroup, as reported in a statement on Monday.
The German company has reported that it has closed the purchase agreement with Gategroup, although the deal is pending approval from regulators. In addition to LSG, the Swiss firm will also do the business of VIP lounges, with the manufacturer of packaged food Evertaste, with the logistics provider Spiriant and with all retail stores under the Ringeltaube brand.
In total, the assets that will become the property of Gategroup employ 7,100 workers and generated revenues of 1,100 million euros in 2018, representing a third of the total turnover of LSG in that year.
Lufthansa has explained that the transaction will not significantly impact the net operating result (Ebit) or the net profit for the 2019 and 2020 fiscal years.
As part of the treatment that both parties have reached, a long-term contract has been signed for Gategroup to provide catering services on board in the ‘hubs’ of Lufthansa in Frankfurt, Munich and Zurich. In the first two, the firm will maintain a minority interest through a joint venture.
«This ensures a high level of occupational safety in these locations, so our customers can continue to expect the highest gastronomic quality on board,» said the president of the council and CEO of Lufthansa, Carsten Spohr.