gategroup Completes Acquisition of Cara Airline Solutions

ZURICH and TORONTO, Nov. 8, 2010 /PRNewswire-FirstCall/ -- Having met all customary closing conditions, gategroup today acquired substantially all of the business assets of Cara Airline Solutions, Canada's premier airline catering and logistics provider, from Cara Operations Limited.  

Cara Airline Solutions achieves annual revenues of approximately CHF 200 million and was obtained on favorable terms.  Furthermore, the acquisition achieved important entry points for gategroup's core company Gate Gourmet into Canada, where it previously had no presence.  

"We are confident that the combination of Gate Gourmet and Cara Airline Solutions will create beneficial opportunities that would not have existed previously for customers and other stakeholders, while complementing gategroup's existing presence across the Americas," said Guy Dubois, gategroup Chief Executive Officer.  

With the addition of Cara Airline Solutions' 10 facilities at some of Canada's busiest and largest airports, including Toronto, Montreal and Vancouver, Gate Gourmet now globally serves approximately 275 million passengers annually from 107 airline catering kitchens.  While Cara Operations Limited has agreed to allow gategroup to continue using the Cara Airline Solutions name through the transition period, Gate Gourmet is the sole owner and operator of the business.  

The acquired company now operates as Gate Gourmet Canada Inc., under the leadership of Doug Goeke, who has been appointed as President and Managing Director for the new entity.  Goeke most recently served as Chief Financial Officer for Gate Gourmet's North America region.  Goeke reports to Andrew Gibson, Group Senior Vice President and President of gategroup's North America region.  

Gibson acknowledged contributions to date by Cara Airline Solutions employees and the strong future anticipated for Gate Gourmet Canada. "This gives us the opportunity to take the best of both companies and improve our operations," he said.  "We'll get to meet and work with new customers, strengthen existing relationships, and offer more innovative, world-class services -- for which Cara Airline Solutions and Gate Gourmet are well known and respected."

About gategroup
gategroup is the leading independent global provider of onboard services to companies that serve people on the move. gategroup comprises 11 brands:  deSter, eGate Solutions, Elan, Gate Aviation, Gate Gourmet, Gate Safe, Harmony, Performa, potmstudios, Pourshins and Supplair. 

The Group's world-class capabilities are focused in catering and hospitality; provisioning and logistics; and onboard solutions. Our customers include top airlines and railroads around the world that rely on our expertise and solutions tailored to their guests, service offerings and geographic regions.

Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the symbol GATE. Please visit www.gategroup.com.

SOURCE gategroup

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