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gategroup acquires Cara Airline Solutions; Vienna Airport to commence maintainance work

16-Sep-2010

gategroup (+0.7%) rose only marginally, despite news it has reached an agreement with Cara Operations Limited for gategroup to acquire Cara Airline Solutions, a Canadian airline catering and logistics provider. When complete, the transaction will establish gategroup’s core brand Gate Gourmet as a major player in the Canadian airline services market, where it currently does not have a presence.

Cara Airline Solutions, which operates 10 facilities at some of Canada’s busiest and largest airports, achieves annual revenues of approximately EUR153.6 million. Further details of the agreement were not disclosed. The transaction is subject to customary closing conditions and approvals.

gategroup CEO, Guy Dubois, stated the acquisition “fits well with our strategy to increase shareholder value by taking advantage of attractive acquisition opportunities and growing with hub carriers in hub markets”. The transaction is expected to complement the company’s presence in North America, where it expects annual revenue of EUR768.1 million this year.

Maintenance work at Vienna Airport to start this month

Vienna Airport (-0.4%) slipped. Flughafen Wien AG announced plans during trading to commence maintenance work on Terminal 2 at Vienna Airport from 20-Sep-2010 presumably to the end of Aug-2011. The airport operator stated there will be slight changes for passengers during this period, but operations in the area will generally proceed without disruption. The maintenance project is focused primarily on the re-insulation of the roof to improve energy efficiency and to also work on the the roof structure. In addition, preparatory work will also be carried out to allow for a direct link to the terminal expansion VIE-Skylink when operations start.

Elsewhere, Australian Infra Fund (+3.7%) and GAP (+2.2%) made strong gains for the day, while Shanghai Airport (-2.5%), Zurich Airport (-2.5%) and Xiamen Airport (-2.3%) fell.

Selected airports daily share price movements (% change): 15-Sep-2010


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