Gategroup Holding AG agreed to acquire LSG Lufthansa Service Holding AG's European catering business.
Financial details of the deal, which is subject to antitrust approval, were not disclosed. The agreement also includes LSG's lounge business, retail convenience food provider Evertaste, equipment business Spiriant, and the retail outlets and operations under the Ringeltaube brand.
The businesses to be acquired employ about 7,100 people and generated approximately €1.1 billion in revenues in 2018, Deutsche Lufthansa AG said in a statement.
Gategroup will cater flights at Lufthansa Group's Frankfurt, Munich and Zurich centers under a long-term contract that forms part of the deal. Lufthansa will retain a minority stake in a new joint venture company that will manage the Frankfurt and Munich operations, which provide catering for its flights.
The sale of the remaining LSG businesses are set to start in early 2020, Lufthansa said.