The transaction is closed and is not subject to any further regulatory or shareholder approvals. gategroup has acquired a 74 percent interest in Skygourmet and the consideration is a combination of cash and assumption of debt. IHC, the parent company of Skygourmet, will retain a 26 percent interest. Further details remain confidential.

"India's vibrant economy and its surging airline industry offer an excellent opportunity," said gategroup CEO Guy Dubois. "The Skygourmet acquisition fits perfectly with our growth strategy and with our objective to add to shareholder value by increasing gategroup's presence in emerging markets. We're confident this addition will grow our top line and improve profit margins," he said.

"India is a greenfield expansion opportunity for gategroup, and we are pleased that IHC retains an interest in Skygourmet to help us adapt to this vibrant market," Dubois added.

Ravi Deol, IHC Managing Director and Chief Executive Officer, said: "It is a win-win situation for both companies. This partnership with a category leader will combine Skygourmet's leadership and knowledge of the Indian market with Gate Gourmet's global best practices. We are confident the combination will create significant value for the shareholders and provide superior service to customers. IHC remains committed to the Indian market and will continue its focus on developing consumer opportunities."

Skygourmet has a production capacity of more than 110,000 meals per day and is the only one with catering facilities at all six of India's major airports. It operates in Mumbai, Delhi, Bangalore, Chennai and Hyderabad and is in the process of constructing a new unit in Kolkata. In Pune, Skygourmet has a franchise arrangement.

Skygourmet has strong relations with the three major domestic airlines in India: Jet Airways and its subsidiary, JetLite; Kingfisher Airlines; and NACIL (Air India/Indian Airlines) serving them at most of their hubs and other domestic locations. Gate Gourmet already has a unit in the Indian resort town of Goa, which it acquired in 2007.

While Skygourmet primarily serves the domestic Indian market, gategroup has significant upside potential to leverage its global network capability and grow business with international carriers flying into India. In addition, gategroup's expertise in onboard retailing will enhance Skygourmet's existing buy-on-board offering to domestic carriers.

"We have long identified Asia as an area of enormous potential. Establishing a major foothold in India, coupled with our recent moves to expand at Tokyo's Narita and Haneda airports, demonstrate that gategroup is executing on its growth strategy in that important region," Dubois said.

The joint venture will be overseen through a newly created Advisory Board, which will include Guy Dubois, CEO; Mike Pooley, Group Vice President and President Asia Pacific; and IHC's Promoter Directors Ravi Deol and Sandeep Vyas.

Skygourmet was established in 2002. It employs approximately 2,600 people. Its flight kitchens are five years old or less and have capacity for growth. "The business is well-run and cost-competitive with a strong market position. We welcome Skygourmet and its employees to the gategroup corporate family," Dubois said.