Switzerland's Gategroup Holding is acquiring the airline catering firm paying $39 mn in cash plus assuming debt.
AIM-listed India Hospitality Corp. (IHC), which has interests in leisure and hospitality businesses, has sold its airline catering business to Switzerland-based Gategroup Holding AG. The deal involves IHC selling a 74% stake in its wholly-owned airline catering company Skygourmet Catering Private Limited for $39 million in cash. IHC will continue have a 26% in Skygourmet and is also entitled to proceeds from land sale in Delhi.
Though IHC informed the deal implies an enterprise valuation of $92 million for Skygourmet, the remaining amount may have gone towards adjusting debt of the firm. The airline catering business of IHC had liabilities of $36.36 million as of March 2010, as per its annual report.
The deal comes on the backdrop of recent media reports that IHC is close to acquiring world’s largest noodle bar chain Wagamama for $400 million.
IHC, which acquired Skygourmet and restaurant chain Mars Restaurants from private equity firm Navis Capital and entrepreneur Sanjay Narang in 2007 for $110 million, has also entered into an agreement to sell its remaining stake in Skygourmet. Gategroup has the option to buy IHC's stake during various periods between 30 September 2011 to 30 November 2013 for $13.75 million plus 10% interest per annum from signing of the deal.
IHC has also put an option which kicks in from 30 November 2012 to
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