SPAIN. Gate Gourmet and Spanish airline Iberia have signed a Letter of Intent for the purchase by Gate Gourmet of a 70% stake in airline catering company Iber-Swiss, presently owned by Iberia. Gate Gourmet already owns the other 30% of the shares. The value of the sale amounts to €23.5 million (US$29.0 million).
This agreement also forms the basis for a worldwide seven-year contract by which Gate Gourmet will provide exclusive catering, inflight and supply chain management services to the Iberia Group worldwide. Iber-Swiss caters for the passengers of the Iberia Group and another 30 airline companies each day. Last year, the company produced more than 14 million meals for almost 140,000 flights.
With the acquisition, which is still subject to approval by the competition authorities, Gate Gourmet expects to gain annual revenues of €80 million (US$99 million).
