gategroup to acquire leading Canadian airline caterer, Cara Airline Solutions

gategroup and Cara Operations Limited (Cara) announced (15-Sep-2010) they have reached an agreement for gategroup to acquire Cara Airline Solutions, a Canadian airline catering and logistics provider. When completed, 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. [more]

gategroup: "Adding Cara Airline Solutions to our portfolio fits well with our strategy to increase shareholder value by taking advantage of attractive acquisition opportunities and growing with hub carriers in hub markets. This transaction will complement our market presence in North America where management expects annual revenue will then approach CHF1 billion [EUR768.1 million]. It will also allow us to leverage our skills and resources to achieve operational synergies and enhanced market access," Guy Dubois, CEO. Source: gategroup, 15-Sep-2010.