(Adds detail, background.)
Zurich Dec 29 Swiss airline catering company
Gategroup Holding said on Thursday it was buying Air
France KLM's catering business Servair for 237.5
million euros ($248.31 million), including debt, to create the
world's leading inflight catering group.
After the deal, Gategroup will be serving more than 300
airline customers and expects annual revenue to exceed 4.4
billion Swiss francs ($4.29 billion), the group said in a
The enterprise value of 237.5 million euros is based on a 50
percent stake in Servair, Gategroup said.
Air France-KLM said in May it was entering exclusive
negotiations with Gategroup's parent Chinese aviation and
shipping conglomerate HNA Group to sell a stake in Servair and
transfer operational control to HNA.
Gategroup said it would finance the acquisition initially
through a bridge facility which would be replaced by a capital
market transaction likely to be in the first half of 2017.
Gategroup said Lazard was acting as its financial adviser on
HNA Group bought Gategroup in a $1.5 billion deal earlier
($1 = 0.9565 euros)
($1 = 1.0255 Swiss francs)
(Reporting by Silke Koltrowitz. Editing by Jane Merriman)