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Xavier Rossinyol: “We are… creating the basis for the best Buy on Board offering in the industry” |
SWITZERLAND. gategroup Holding AG today announced that it has met all closing conditions and therefore acquired Inflight Service Group in full, from funds advised by Triton.
The transaction, first announced in early December 2015, will increase gategroup’s revenue by CHF250 million (US$245 million) and EBITDA by CHF13.4 million (US$13.14 million) annually pre-synergies.
The deal is expected to be cash accretive to EPS in its first year.
Gategroup said that the deal had been complemented by TUI Group’s recently announced five-year contract with group subsidiary Gate Retail Onboard.
The agreement covers management of inflight retail food & beverage and duty free items as well as pre-order sales in the UK and across the Nordics.
The acquisition of IFS, now concluded, further expands gategroup’s leadership position in “Buy on Board” services, the group said, in terms of size, number of customers, business intelligence (with data comprising purchasing preferences of more than 175 million passengers worldwide), and onboard technology.
“We are very pleased to bring together gategroup and IFS, creating the basis for the best Buy on Board offering in the industry and leveraging our proven brand of quality and innovation to delight airline customers and their passengers,” said gategroup Chief Executive Officer Xavier Rossinyol.
“Additionally, the signing of the contract with TUI is another step in expanding our platform of customers, and we thank TUI for their trust in gategroup,”
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A glance at the new combined group’s inflight sales revenues |
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Inflight Service’s estimated 2015 revenue split by sales channel (above) and by region (below) |
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gategroup says it will become the market leader in Buy on Board worldwide and take a dominant position among LCCs and the charter business in Europe |
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How gategroup sees the combined strengths of each player |
