After many months of speculation in the financial media world as to who would buy Alpha LSG, dnata has announced an agreement to purchase the remaining 50% of its UK inflight catering joint-venture, Alpha LSG, from the LSG Group.
The acquisition expands Dubai-based dnata’s international portfolio, and will make it the sole shareholder of the biggest inflight catering, on-board retail and logistics company in the UK. The transaction is now subject to regulatory approval.
Alpha LSG was formed in 2012 by the dnata-owned Alpha Flight Group and LSG Sky Chefs; each holding a 50% share of the business. The agreed share purchase has the full support of the LSG Group and Alpha LSG operations will continue as usual.
Since its formation, Alpha LSG has grown into a competitive, industry-leading business. It has revenue of over £290 million and employs 3,500 people across 15 airport catering facilities and two central production facilities in the UK. Each year it produces over 30 million meals, serving more than 160 thousand aircraft belonging to its 80 customers.
Robin Padgett, Divisional Senior Vice President, dnata, said: “Alongside the LSG Group, we have built a high-performing business in the UK and have helped our airline customers deliver innovative, world-class solutions for their customers.
“We appreciate the strong partner we have had in LSG over the past seven years and are excited to build on our success and bring Alpha LSG’s employees into the dnata family.”
The proposed purchase of Alpha LSG follows dnata’s increased investment in its catering portfolio this year, having opened new facilities in Houston, Boston, Los Angeles, San Francisco and Vancouver. dnata’s rapidly expanding catering division now boasts over 10,000 employees who are focused on providing quality catering, inflight retail and F&B solutions across the globe.
Jochen Müller, Chief Operations Officer, LSG Group said: “We would like to thank Alpha LSG employees for their dedicated service over the years, as well as our JV partner, dnata, for the trusting and collaborative partnership in the highly competitive UK market.
“This move will help to secure the continued growth of Alpha LSG and we look forward to a smooth transition while we continue our world-leading day-to-day operations.”
Alex Forbes, Chief Executive Officer, Alpha LSG added: “We look forward to the next phase of our journey as part of the global dnata network.”