Herbert Smith Freehills has advised Lufthansa Group on the sale of the European Business of LSG Group to airline caterer gategroup. The companies also entered into long-term catering agreements for Frankfurt, Munich and Zurich hubs.
In addition to the LSG Group’s European catering operations, the purchase agreement extends to its lounge business, retail convenience food specialist Evertaste, the SPIRIANT equipment business and the retail outlets and operations of the Ringeltaube brand.
The businesses concerned currently employ some 7,100 personnel and generated revenues of around EUR1.1 billion last year – about a third of the LSG Group’s total revenue volume.
One part of the agreement consists of a long-term contract for gategroup to cater flights at the Lufthansa Group’s Frankfurt, Munich and Zurich hubs. For the Frankfurt and Munich operations which provide catering for Lufthansa flights, Lufthansa will retain a minority shareholding in a new joint venture company.
The parties have agreed not to divulge the financial details of the transaction. The sale is also subject to the approval of the relevant competition authorities.
gategroup is a global leader in airline catering, inflight sales and hospitality products and services. Headquartered in Zurich, Switzerland, gategroup delivers operational excellence through an extensive catering network in the aviation industry, serving more than 700 million passengers a year from over 200 operating units in over 60 countries and territories throughout every continent. In 2018 gategroup and its 43,000 employees worldwide generated CHF4.9 billion in revenues.
The LSG Groupis one of the world’s leading providers of end-to-end onboard products and services for the travel industry. The group maintains a strong portfolio of independent specialist brands: LSG Sky Chefs (airline and rail catering, including lounges), Retail inMotion (inflight sales), SPIRIANT (onboard equipment design and procurement) and Evertaste (convenience food).
The Herbert Smith Freehills team advising Lufthansa on the transaction
Herbert Smith Freehills, Germany: Dr Sönke Becker (Lead, Partner, Düsseldorf)
Corporate/M&A: Dr Christoph Nawroth (Lead, Partner, Düsseldorf), Dr Markus Lauer (Partner, Frankfurt), Dr Christian Johnen (Counsel, Düsseldorf), Dr Genevieve Baker (Senior Associate, Düsseldorf), Dr Julius Brandt (Senior Associate, Frankfurt), Associates Stefanie Strahl, Sören Flecks, Dr Nikolaus Moench, Dr Christina Wolf, Professional Support Lawyer Caroline Schulze Baek, Lauren Kode (all Düsseldorf)
Public Law: Dr Marius Boewe (Partner, Düsseldorf)
Commercial: Dr Friso Heukamp (Counsel, Frankfurt)
Projects: Dr Thomas Nebel (Senior Associate, Düsseldorf)
Data Protection: Dr Simone Ziegler (Senior Associate, Frankfurt)
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