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Tue 3 Dec 2019 12:31 AM

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Dubai's Dnata inks deal to buy out UK inflight catering firm

Dubai-based air services provider signs agreement to purchase the remaining 50% of its UK inflight catering JV from the LSG Group

Dubai's Dnata inks deal to buy out UK inflight catering firm

Dnata’s catering division now boasts over 10,000 employees.

Dnata, the Dubai-based air services provider, has announced an agreement to purchase the remaining 50 percent of its UK inflight catering joint-venture, Alpha LSG, from the LSG Group.

The acquisition expands Dnata’s international portfolio, and will make it the sole shareholder of the biggest inflight catering, on-board retail and logistics company in the UK. The transaction is subject to regulatory approval, a statement said.

Alpha LSG was formed in 2012 by the Dnata-owned Alpha Flight Group and LSG Sky Chefs - each holding a 50 percent share of the business.

Alpha LSG has has revenue of over £290 million and employs 3,500 people across 15 airport catering facilities and two central production facilities in the UK. Each year it produces over 30 million meals, serving more than 160 thousand aircraft belonging to its 80 customers.

Robin Padgett, divisional senior vice president, Dnata, said: "Alongside the LSG Group, we have built a high-performing business in the UK and have helped our airline customers deliver innovative, world-class solutions for their customers.

"We appreciate the strong partner we have had in LSG over the past seven years and are excited to build on our success and bring Alpha LSG’s employees into the dnata family."

The proposed purchase of Alpha LSG follows Dnata’s increased investment in its catering portfolio this year, having opened new facilities in Houston, Boston, Los Angeles, San Francisco and Vancouver.

Dnata’s catering division now boasts over 10,000 employees.

Alex Forbes, CEO, Alpha LSG said: "We look forward to the next phase of our journey as part of the global Dnata network."
   
Each day, Dnata handles over 1,900 flights, moves over 8,500 tons of cargo, books over 16,000 hotel stays, and uplifts over 320,000 meals.

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