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Gate Gourmet France S.A.S and LSG Sky Chefs France S.A to combine catering activities at Paris

5-Apr-2006

Gate Gourmet and LSG Sky Chefs have announced their intention to

combine their Paris Charles de Gaulle Airport catering activities under

a new company that would take the form of a 50/50 joint venture.


The objective of potentially merged Paris activities would be to create a strong business foundation in a challenging airline industry environment. By combining their businesses, the two companies aim to ensure their long-term survival by returning to profitability and also to develop new business. Gate Gourmet and LSG Sky Chefs shall honor existing contracts with airlines and would expect the joint venture to provide the same high-quality service their customers now receive.

Both management teams will follow the French legal requirement regarding the consultation of workers’ representatives on the joint venture project, and will encourage dialogue among the various unions and employee representatives. For the immediate future, there will be no change in employment levels due to the transaction. However, more in-depth analysis would be needed to determine the impact on employment going forward.

The transaction will require the approval of the European Commission. Assuming the necessary clearances are obtained, the companies would begin implementing the joint venture once the transaction closes.

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