Proposal for Joint Venture with Alpha in the UK
London, UK – Alpha Flight Group Ltd ("Alpha") and LSG Lufthansa Service Holding AG ("LSG") have signed a Memorandum of Understanding ("MOU") to establish a UK-only joint venture, and have correspondingly informed the European Commission.
The finalisation and timing for the establishment of the joint venture is subject to anti-trust approvals from the European Commission and approvals or acceptable clearances by the relevant authorities as well as the final approval of the parent Boards of Alpha and LSG. Until such approvals have been received, both organisations will continue to operate a "business as usual" policy.
The proposed scope of the joint venture, in which Alpha and LSG will be equal partners, will include all existing Alpha and LSG Sky Chefs airline catering, airline retail and ancillary services in the UK, with the exception of Alpha’s dedicated British Airways operation at London- Gatwick and its Irish operations. The joint venture business will be carried on by a new company with anticipated combined revenues of circa 330 million GBP, in which a subsidiary of Alpha will hold 50% of the shares and a subsidiary of LSG will hold 50% of the shares.
Alpha Flight Group Ltd (Alpha) is a leading international flight caterer employing 5,800 staff worldwide. Alpha currently operates in 58 airports in 11 countries, producing over 120,000 meals per day. With dedicated chefs skilled in different cuisines, it provides first, business and economy class meals, tailored to the tastes of the passengers travelling with its airline customers including a range of special meals. Alpha also operates a number of food and beverage facilities in several airports including the United Arab Emirates, Romania, Italy and Jordan. In 2009 Alpha’s turnover was GBP 360 million.
The LSG Group is the world’s leading provider of end-to-end onboard products and services for the travel industry. It possesses a strong portfolio of independent expert brands: LSG Sky Chefs (catering and hospitality, including lounges), Retail inMotion (onboard retail), SPIRIANT (onboard equipment) and Evertaste (convenience food). The LSG Group is headquartered in Neu-Isenburg, near Frankfurt, Germany. In 2017, its almost 35,000 employees achieved consolidated revenues of EUR 3.2 billion. Additionally, the LSG Group has a rich network of joint ventures and partnerships partners around the globe, employing more than 20,000 staff and generating non-consolidated revenues of EUR 1.3 billion. www.lsg-group.com