Lufthansa has confirmed it is to sell the remaining parts of its LSG Group catering business to European private equity group Aurelius.
The German flag carrier announced in 2019 that it wanted to focus on its ‘core airline activities’, before disposing of its European LSG Sky Chefs operation to gategroup.
This latest sale sweeps up all that was left – namely “all classic catering, onboard retail and food commerce activities and brands” of the LSG Group plus all 131 LSG Sky Chefs customer service centres in the US, Latin America, Asia-Pacific and emerging markets; Europe-based onboard retail unit Retail InMotion and SCIS Air Security Services in the US. Those operations encompass around 19,000 employees in 36 joint ventures worldwide.
In a brief statement, Lufthansa said the sale would enable it to “concentrate on executing its ambitious three-pillar strategy in order to leverage growth opportunities and lead the market in innovation, with the support of its new owner.”
Details of the transaction value have not been revealed, although the funds raised are rumoured to be significant.
“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 to seize. With the support of Aurelius, we are confident that we will drive decisive change within our industry.”
Lufthansa Chief Financial Officer Remco Steenbergen said he was confident the deal would be good for LSG Group in the future.
“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. 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,” commented Steenberg.
The sale is expected to be completed by Q3 of 2023, subject to regulatory approval.
