Deutsche Lufthansa AG (Lufthansa) has signed an agreement with private equity group AURELIUS for the sale of the remaining LSG Group business. The European LSG Sky Chefs activities had already been sold 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,” said Remco Steenbergen, Chief Financial Officer, Deutsche Lufthansa AG.
The divestment of the catering segment is part of the Lufthansa Group’s strategy to focus more on its airline business in the future. The transaction is expected to have a positive effect on Lufthansa Group’s operating margin (Adjusted EBIT) and capital return (Adjusted ROCE).
The carve-out transaction includes all classic catering, onboard retail and food commerce activities and brands of the LSG Group, with all 131 LSG Sky Chefs Customer Service Centers (CSCs) in the Americas (U.S. and Latin America), EMMA (Emerging Markets) and Asia-Pacific regions, plus onboard retail expert Retail InMotion (RiM), based in Europe, and SCIS Air Security Services in the U.S. It combines a total of around 19,000 employees worldwide and 36 joint ventures across the globe.
Once the deal is closed, the LSG Group will be able 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.
