Texas Pacific Group sells remaining stake in Gate Gourmet

Private equity firm Texas Pacific Group has reportedly sold its remaining stake in airline caterer Gate Gourmet to investment bank Merrill Lynch.

According to newswire Reuters, Merrill Lynch has bought the stake using cash on its balance sheet. "TPG no longer owns Gate Gourmet," a source told Reuters.

Gate Gourmet, the world's second-largest in-flight caterer, has been plagued by financial troubles and industrial action since Texas Pacific bought it from Swissair Group in 2002 for 1.1b Swiss francs (£406m).

After narrowly avoiding bankruptcy in 2005, the caterer was involved in a long-running dispute with the Transport and General Workers Union after it sacked hundreds of staff.

That triggered a sympathy strike by British Airways workers that caused chaos at London's Heathrow Airport.

Texas Pacific later restructured Gate Gourmet's debt and ceded some control of the company.

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By Daniel Thomas

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