Lufthansa has announced that the company has signed an agreement with private equity group Aurelius to sell the LSG Group business.
According to Lufthansa, the divestment of the catering segment is part of the group’s strategy to focus more on its airline business in future.
The transaction includes all classic catering, onboard retail and food commerce activities and brands of the LSG Group, all 131 LSG Sky Chefs Customer Service Centers in the Americas, Emerging Markets and Asia-Pacific regions, as well as onboard retail expert Retail InMotion based in Europe and SCIS Air Security Services in the US.
“This is the beginning of a new chapter for the LSG Group,” said LSG Group CEO Erdmann Rauer.
“With Aurelius, we have found a trustworthy partner who buys into our global strategy, which focuses on the three pillars of airline catering, onboard retail and food commerce. We are excited for what the future holds for our company – especially for our employees – and the many business opportunities we plan seize. With the support of Aurelius, we are confident that we will drive decisive change within our industry.”
Dr Dirk Markus, Founding Partner of Aurelius, said: “This acquisition underlines Aurelius’s position as a market leader for delivering very complex corporate carve-outs on a global scale.
“Our operational specialists will support the LSG Group in growing their market-leading position. Aurelius will work with the LSG Group’s experienced management team to materialise the growth opportunities that are available to the company.
“We look forward to a close partnership with the LSG Group team and embarking on an exciting journey to becoming an even more successful stand-alone company.”
Remco Steenbergen, Chief Financial Officer, Deutsche Lufthansa AG, said: “We are pleased to have found the right investor for the LSG Group going forward that also has the full support of the LSG Group management. We are confident that Aurelius will enable the LSG Group to be well positioned in the years ahead.
“In turn, it enables us to focus even more on further improving the profitability and capital returns of the Lufthansa Group core business. As customers, our airlines are looking forward to a continued partnership with LSG Group beyond the sale.”
The transaction is expected to close by Q3 2023.
