Lufthansa's catering arm LSG Sky Chefs is buying Gate Gourmet's facility in Brussels.
Both in-flight services providers have inked an contract to hand over the "entire operation and workforce" to LSG's business at Brussels airport, says Zurich-based Gategroup.
While the deal is effective on 1 November 2013, the operations will be transferred in phases over the next six months. No further details have been disclosed about the agreement.
Gategroup is restructuring its European operations and decided to sell the Brussels site, because the facility offered "limited growth".
The sale will not have a "material" impact on Gategroup's overall business, it adds.
The Swiss caterer wants to focus on "serving airlines at their hubs" and more lucrative locations to raise profitability, says Jann Fisch, president of the European Airline Solutions division.
Belgium's largest mainline carrier Brussels Airlines - in which Lufthansa holds a 45% stake - has been contracting LSG for in-flight services. The German group acquired the catering unit of Brussels Airlines' predecessor, SN Brussels, in 2002.