M&A Awards 2026: Gate Gourmet Switzerland GmbH acquires KLM Catering Services Schiphol B.V. (Best Deal Mid-Market 2026)

Brief description deal / Deal outline  

KLM Royal Dutch Airlines sold a 75% stake in its subsidiary KLM Catering Services (KCS) to gategroup, one of the world’s leading airline caterers. KLM retains a 25% interest and remains closely involved in the onboard services for its passengers. The agreement was signed on 31 March 2026 and the transaction closed on 1 July 2026. 

The acquisition includes a 20-year catering contract with exclusive rights for gategroup to cater KLM flights departing from Schiphol Airport. The partnership also includes the real estate co-development of a brand-new facility for KCS near Schiphol, with state-of-the-art technology for future catering concepts and demand. 

Why should this deal win the Award for Best Deal Mid-Cap 2026?   

Project Windmill was not merely an M&A transaction, but the creation of a strategic partnership out of a complex non-core divestment. It delivers immediate financial value, reduces future investment requirements and creates a scalable platform for innovation, sustainable growth and service excellence at one of Europe’s most important aviation hubs. Throughout the process, constant attention was paid to the impact on employees. 

The ownership structure was central to the transaction. By selling 75% while retaining 25%, KLM benefits from the global scale, specialist expertise and investment capacity of a leading airline caterer, while remaining involved in the future development of KCS as both shareholder and most important client. Rather than simply outsourcing catering services, KLM created a solution that aligns the long-term interests of KLM, KCS and gategroup. 

The transaction delivers compelling and measurable value for KLM. In addition to significant proceeds from the sale of the shares, it removes all future KCS-related capital expenditure, which is particularly relevant given KCS’s planned relocation to facilitate the development of Schiphol’s A Pier: gategroup finances the fit-out of the new facility, while a dedicated real estate investor funds the building. KLM also benefits from committed efficiency targets by 2030 and lower future operating costs, while a robust shareholders’ agreement and commercial framework protect it against excessive cost increases and preserve its control over product quality and customer experience. For gategroup, the deal strengthens its position at Schiphol and adds a renowned global airline to its customer portfolio, shortly before its planned IPO. 

The deal also stands out for the breadth of its execution. KCS had historically been deeply embedded in KLM Group, requiring a substantial carve-out and separation programme across finance, operations, IT, HR, legal, procurement and commercial functions, supported by a vendor due diligence by Deloitte. A comprehensive financial model was developed to assess valuation, the business plan, capital expenditure, operating costs and the long-term commercial arrangements, and was used throughout the negotiations. 

The process was run competitively, requiring careful management of multiple interested parties and an extensive due diligence process, while KLM preserved operational continuity in a business essential to its daily flight operations. Detailed contract negotiations covered not only the share sale, but also the future governance framework, long-term commercial arrangements, transition services and the operating principles of the partnership. The result is a clear example of value-driven M&A in which innovative structuring and strong execution have created durable value for all stakeholders. 

What is the impact of this deal for the company?   

The transaction was particularly timely given KCS’s planned relocation to facilitate the expansion of Schiphol’s A Pier. While this introduced significant operational and organisational complexity, it also created a unique opportunity to redesign the future of the catering business. The partnership combines gategroup’s international expertise, operational best practices and investment capacity with KCS’s local market knowledge, highly experienced workforce and longstanding relationship with KLM. 

Together, the parties aim to develop a modern and resilient operation, supported by future-proof facilities, technology upgrades, process improvements and fleet electrification, with a focus on personalised catering, sustainability, operational efficiency and strong employment practices. 

What is the impact of this deal for the direct stakeholders?   

The partial divestment enables KLM to leverage the expertise and global scale of a leading airline caterer, while benefiting from committed cost savings and access to innovative, personalised catering concepts. The transaction relieves KLM of significant capital expenditure and generates proceeds that can be reinvested in its core airline operations. 

For gategroup, the acquisition is a compelling opportunity to expand its business and strengthen its position at Amsterdam Airport Schiphol shortly before its planned IPO. For KCS employees, a comprehensive separation process was prepared to establish KCS as a fully standalone business, with a strong focus on operational continuity and people. 

What is the impact of this deal on society?   

By securing long-term investment in a critical catering operation at Schiphol, the transaction strengthens an essential component of Dutch aviation infrastructure and supports the continuity and resilience of catering services for one of Europe’s busiest airports. KLM remains in control of the catering concept and the sourcing of meals, allowing for local products. 

The deal also underpins investments in operational efficiency, facility modernisation, technology and fleet electrification, contributing to a more sustainable aviation supply chain, and helps preserve and develop skilled employment in the region. 

What was most complex about this deal?   

The carve-out of KCS from KLM Group was the main complexity. There was a significant degree of integration between KLM and KCS, and no solid commercial relationship or pricing structure for its services: during the process, KCS was transformed from a cost centre into a business with a new long-term commercial contract. 

At the same time, the parties had to agree on a comprehensive long-term commercial framework, including capital expenditure requirements, while managing a competitive process for a business whose future value depended on dozens of interdependent agreements and assumptions. Stakeholders from different countries, corporate cultures and decision-making structures had to remain aligned throughout. The complexity of Project Windmill therefore came not from its size, but from the number of moving parts that all had to fit together for the transaction to succeed. 

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