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gategroup has exercised its call option with India Hospitality Corp. (IHC) to acquire the remaining 26 percent of the Indian airline catering company Skygourmet.
Exercising the option in 2012 will have no impact on the Group’s income statement since a liability had previously been recognized. The Company is increasing its stake to provide maximum flexibility to run the business in India as a fully owned and integrated business of gategroup.
“We appreciate IHC’s support during the past 15 months to help familiarize us with the Indian business environment, and we are eager to move forward in developing this important asset,” said gategroup CEO Andrew Gibson.
gategroup subsidiary Gate Gourmet entered a joint venture agreement with IHC in November 2010. Skygourmet operates airline catering activities in Chennai, Delhi, Hyderabad, Mumbai and Pune, while Gate Gourmet operates an airline catering facility in Goa. Further expansion of the network is under development.
Additionally, Skygourmet and Travel Food Services (TFS), a leading Indian provider of travel food and beverages, are finalizing a strategic partnership to manage newly developing retail-on-board services for India-based airlines. “TFS brings the local experience and expertise to augment what we bring from a global platform,” said Herman Anbeek, gategroup Chief Commercial Officer.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
