Lufthansa selling European catering business to gategroup

BERLIN (AP) - Lufthansa is selling the European business of its catering and services subsidiary LSG Group to Switzerland-based gategroup for an undisclosed amount, the German airline said Monday.

The deal covers LSG's European catering operations as well as its lounge and equipment businesses, packaged food provider Evertaste and retail operator Ringeltaube, Lufthansa said. Between them, those businesses have 7,100 employees and had revenue of some 1.1 billion euros ($1.2 billion) last year.

Lufthansa said that the sale won't have any major impact on its profit this year or next.

CEO Carsten Spohr said that 'œin gategroup we have found a new owner for LSG's European business which has catering as its core activity.'ť That, he added, gives the business "far better future investment prospects and further development opportunities.'ť

Lufthansa is also launching a partnership with gategroup that will involve the Zurich-based company providing catering for flights at the airline's Frankfurt, Munich and Zurich hubs. Lufthansa will retain a minority stake in new joint venture companies providing catering in Frankfurt and Munich.

The company said that the sale of the rest of LSG Group 'œshould be initiated early next year.'ť