Deutsche Lufthansa AG (Lufthansa) signed an settlement with non-public fairness group AURELIUS for the sale of the remaining LSG Group enterprise. The European LSG Sky Chefs actions have been already bought in 2019 to gategroup.
“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,” stated Remco Steenbergen, Chief Financial Officer, Deutsche Lufthansa AG.
The divestment of the catering phase is a part of the Lufthansa Group’s technique to focus extra on its airline enterprise sooner or later. The transaction is predicted to have a constructive impact on Lufthansa Group’s working margin (Adjusted EBIT) and capital return (Adjusted ROCE).
The carve-out transaction consists of all basic catering, onboard retail and meals commerce actions and types of the LSG Group, with all 131 LSG Sky Chefs Customer Service Centers (CSCs) within the Americas (U.S. and Latin America), EMMA (Emerging Markets) and Asia-Pacific areas, plus onboard retail skilled Retail InMovement (RiM), based mostly in Europe, and SCIS Air Security Services within the U.S. It combines a complete of round 19,000 staff worldwide and 36 joint ventures throughout the globe.
Once the deal is closed, the LSG Group will be capable to consider executing its bold three-pillar technique with the intention to leverage development alternatives and lead the market in innovation, with the help of its new proprietor.
“This is the beginning of a new chapter for the LSG Group,” stated 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 about 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.”
“This acquisition underlines AURELIUS´ 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 materialize 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”, states Dr. Dirk Markus, Founding Partner of AURELIUS.
The transaction is predicted to shut by Q3 2023, topic to related exterior approvals and inner carve-out actions.
