The Australian company Gate Gourmet has agreed to acquire two flight kitchens owned by Qantas Catering Group for an undisclosed amount. Terms of the deal were not revealed.
Qantas Catering is operated by Q Catering, which operates in six Australian ports – Sydney, Melbourne, Brisbane, Cairns, Adelaide and Perth.
The businesses involved in the transaction are Q Catering's Riverside facility in Sydney and its Cairns operation in Queensland, both of which are well equipped with room for expansion and offer a full suite of services. These include menu development, meal production, aircraft provisioning, post-arrival unloading and dishwashing and equipment warehousing. Cairns also offers cabin cleaning.
Herman Anbeek, senior vice-president and president of emerging markets at Gategroup, said:
This purchase will complement and build Gate Gourmet’s existing business in the important Australian market, where passenger traffic is growing at an estimated 4 to 5 per cent annually. In addition, the purchase would alleviate capacity constraints at Gate Gourmet’s existing Sydney catering unit.
Following the acquisition, which is expected to close in the next three months, annual revenue for the assets to be acquired is estimated to be approximately CHF50m.
Gategroup expects the acquisition to be accretive within an 18-to-24-month period.
The transaction is subject to customary closing conditions and approvals, including clearance by competition authorities.