December 2 2019  |  Catering

dnata to take remaining shares of Alpha LSG

By Rick Lundstrom

Alpha LSG was formed in 2012 and now produces 30 million meals per year

dnata announced today an agreement to purchase the remaining 50% of its UK inflight catering joint-venture, Alpha LSG, from the LSG Group expanding the company’s international portfolio, making it the sole shareholder of the largest inflight catering, on-board retail and logistics company in the UK.

The transaction is subject to regulatory approval.

The dnata-owned Alpha Flight Group and LSG Sky Chefs formed alpha LSG in 2012; 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, said a release from dnata.

Since its formation, Alpha LSG has grown to yearly revenue of £290 million (US$347 million) and 3,500 employees people across 15 airport catering facilities and two central production facilities in the UK. Each year it produces more than 30 million meals, serving more than 160 thousand aircraft belonging to its 80 customers.

"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,” said Robin Padgett, Divisional Senior Vice President, dnata. "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. The company has opened new facilities in Houston, Boston, Los Angeles, San Francisco and Vancouver. dnata’s catering division now has more than 10,000 employees who provide catering, inflight retail and food and beverage solutions around the world.

"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,” said Jochen Müller, Chief Operations Officer, LSG Group. "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."

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