gategroup to Acquire Leading Canadian Airline Caterer, Cara Airline Solutions

    
    Acquisition to expand core brand Gate Gourmet into new market




    
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<p><span class="xn-location">ZURICH</span> and <span class="xn-location">TORONTO</span>, <span class="xn-chron">Sept. 15</span> /CNW/ -- gategroup and Cara Operations Limited ("Cara") announced today that they have reached an agreement for gategroup to acquire Cara Airline Solutions, Canada's premier airline catering and logistics provider. When completed, the transaction immediately will establish gategroup's core brand Gate Gourmet as a major player in the Canadian airline services market, where it currently does not have a presence.</p>
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<p>Cara Airline Solutions, which operates 10 facilities at some of Canada's busiest and largest airports, achieves annual revenues of approximately CHF 200 million. Further details of the agreement were not disclosed. The transaction is subject to customary closing conditions and approvals.</p>
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<p>"Adding Cara Airline Solutions to our portfolio fits well with our strategy to increase shareholder value by taking advantage of attractive acquisition opportunities and growing with hub carriers in hub markets," said gategroup Chief Executive Officer <span class="xn-person">Guy Dubois</span>. "This transaction will complement our market presence in <span class="xn-location">North America</span> where management expects annual revenue will then approach CHF 1 billion. It will also allow us to leverage our skills and resources to achieve operational synergies and enhanced market access," he added.</p>
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<p>Cara Airline Solutions serves over 55 Canadian and international airline and rail customers. Cara Airline Solutions' key customers include Air <span class="xn-location">Canada</span>, Air Transat, Jazz, British Airways, Air <span class="xn-location">France</span>, Air <span class="xn-location">China</span>, Jet Airways, <span class="xn-location">China</span> Airlines, and VIA Rail <span class="xn-location">Canada</span>, Canada's national passenger rail service.</p>
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<p><span class="xn-person">Andrew Gibson</span>, Group Senior Vice President and President, <span class="xn-location">North America</span> region, said, "Adding <span class="xn-location">Canada</span> to our network will not only introduce us to new customers, but also allow us to strengthen existing relationships by offering a more robust lineup of cost-effective, innovative onboard solutions across the Americas through gategroup's various brands."</p>
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<p>"Cara Airline Solutions is an important and significant part of our company's history, so it was important to find the right buyer," said <span class="xn-person">Don Robinson</span>, <span class="xn-person">Cara President</span> and Chief Executive Officer. "Our diligence has paid off; gategroup, as an international leader in the industry, understands our customers and the unique, global environment in which we operate. It can offer our employees and customers even more solutions, specialized support and expertise and leadership. We have confidence that gategroup will foster the continued success and long-term growth of the business."</p>
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<p>The sale of Cara Airline Solutions marks the final milestone in Cara's strategy to focus its operations on its branded restaurant business, which includes leading Canadian brands Swiss Chalet, Harvey's, Milestones, Montana's and Kelsey's.</p>
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<p>Cara Airline Solutions employs approximately 2,800 associates and has operations in <span class="xn-location">Calgary</span> and <span class="xn-location">Edmonton</span>, Alberta; <span class="xn-location">Halifax</span>, Nova Scotia; <span class="xn-location">Montreal</span> and <span class="xn-location">Quebec</span> City, <span class="xn-location">Quebec</span>; <span class="xn-location">Ottawa</span> and <span class="xn-location">Toronto</span>, Ontario; Regina, Saskatchewan; <span class="xn-location">Vancouver</span>, British Columbia; and <span class="xn-location">Winnipeg</span>, Manitoba.</p>
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<p>"Cara Airline Solutions has a long and proud history of serving the airline industry and its passengers. We look forward to welcoming Cara Airline Solutions' associates into the gategroup corporate family and to combining and leveraging the respective companies' capabilities, after closing conditions have been met," said Gibson, noting that he and <span class="xn-person">Rob Ramage</span>, President, Cara Airline Solutions, will work closely together through the transition to ensure a successful and seamless integration for employees and business partners.</p>
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    About gategroup
    
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<p>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.</p>
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<p>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.</p>
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<p>Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the symbol GATE. Please visit <a href="http://www.gategroup.com">www.gategroup.com</a>.</p>
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    About Cara
    
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<p>Cara Operations Limited (Cara) is Canada's leading branded restaurant and airline services organization.  The company is more than 125 years old and operates some of the most recognized brands in the country, including Swiss Chalet Rotisserie & Grill®, Harvey's®, Milestones Grill and Bar®, Montana's®, Kelsey's Neighbourhood Bar & Grill® and Cara Airline Solutions®. For more information visit <a href="http://www.cara.com">www.cara.com</a>.</p>
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For further information: Media, For gategroup, Christina Ulosevich, [phone], [email protected]; or For Cara, Katie Clark, [phone], [email protected]; or Investor Relations, For gategroup, Laura Clavari, [phone], [email protected] Web Site: http://www.gategroup.com