Inflight catering giant gategroup is to acquire a majority stake in KLM Catering Services (KCS) from KLM Royal Dutch Airlines.
An announcement today said the “landmark transaction” will form a long-term strategic partnership designed to “redefine the future of inflight catering for KLM airlines at Amsterdam Airport Schiphol”.
When the deal is complete, gategroup will own a 75% stake in KCS, with KLM retaining a 25% share. The announcement said this would allow KLM to focus on its core airline operations.
The acquisition will mean a 5% increase in revenues for gategroup, adding around €250m to gategroup’s existing €5.6bn.
KLM has signed a 20-year catering contract with gategroup as part of the deal.
To support the partnership’s ambitious goals, gategroup will invest in a flagship catering facility at Amsterdam Schiphol, integrating “advanced automation, the highest environmental sustainability standards, and a modern work environment dedicated to employee wellbeing”.
The facility will be completed in 2029 and will stand alongside the existing gategroup facility at Schiphol.
KLM’s existing catering facility is being demolished as part of major expansion plans at the airport.
Herman Anbeek, President Europe of gategroup, said gategroup had competed against other “notable” catering companies in a tender for the partnership.
He insisted there would be no immediate redundancies as a result of the two companies coming together and that both senior leadership teams would remain in place.
“There will be two separate entities in Amsterdam,” he said. “The focus will be on improving the operational performance for KLM in the midterm thanks to automation and technology. We believe we can make it more efficient, but there will be nothing radical.”
He said he was confident the joint venture would not face significant regulatory hurdles because the new facility will only serve KLM and its affiliates, while gategroup’s existing business, which serves other international airlines in Amsterdam, will remain separate.
He said the deal would also allow gategroup to forge a stronger relationship with Air France.
“We already have a joint venture with Air France, which is called Servair, and this will also further strengthen our relationship with Air France/KLM as a group,” he told Onboard Hospitality.
“So, from that point of view, it is a very strategic step because Air France/KLM as a client becomes even more important for us going forward.”
Christoph Schmitz, Chief Executive Officer at gategroup, said: “For me, this partnership is a vital step toward protecting our market leadership. By focusing on our core strength of delivering excellence at scale, we are ensuring that we continue to grow profitably while setting new standards for our industry.”
Bas Brouns, Chief Financial Officer at KLM, added: “We are pleased to have found a strong and specialised partner in gategroup, with many years of experience in airline catering.
“We will remain involved in the catering on board our flights, ensuring the quality and service our passengers expect from KLM. We look forward to working together.”
KCS will continue to operate as an independent entity, “preserving its strong cultural connection with KLM and ensuring seamless service for passengers”.
The announcement said for employees and customers, the transition focuses firmly on continuity, with business operations proceeding as usual while gradually benefiting from integration into gategroup’s expansive global network.
Headquartered in Zurich, Switzerland, gategroup serves millions of passengers through a network of nearly 300 locations in more than 68 countries.
