Lufthansa will completely part with the catering subsidiary LSG Group, because after the sale of the European activities to the Gategroup, Aurelius is now taking over the remainder. The Kranich Group announced this on Wednesday.

"We are pleased to have found the right investor for the LSG Group, who also has the full support of the LSG Group management. We are convinced that the LSG Group will be well positioned with Aurelius in the coming years. This allows us to concentrate even more on further improving the profitability and return on capital of the Lufthansa Group's core business," says Remco Steenbergen, CFO of Deutsche Lufthansa AG.

In 2019, the Kranich Group separated from the European activities of LSG. These were sold to Gategroup, which was formerly a competitor. The non-European business was in love with Lufthansa at the time and is now going to Aurelius. The transaction is expected to close in the third quarter of 2023, subject to appropriate external approvals and internal carve-out activities.

The sale of the catering division is part of the Lufthansa Group's strategy to focus more on the airline's core business. The transaction is expected to have a positive impact on the Lufthansa Group's operating margin (Adjusted EBIT) and return on capital employed (Adjusted ROCE).

The carve-out transaction includes all classic catering activities as well as the onboard retail and food commerce business. In addition, there are all the brands of the LSG Group, including the 131 LSG Sky Chefs catering operations in the Americas (USA and Latin America), EMMA (emerging markets) and Asia-Pacific regions. The onboard retail specialist Retail InMotion (RiM) based in Europe and SCIS Air Security Services in the USA are also included. The LSG Group has around 19.000 employees and operates 36 joint ventures worldwide. Once the transaction is complete, with the support of its new owner, the LSG Group can focus on its three-pillar strategy to seize growth opportunities and lead the market with innovations.

“This acquisition underscores Aurelius' position as a market leader in executing very complex corporate carve-outs on a global scale. Our operational specialists will support the LSG Group in expanding its market-leading position. Aurelius will work closely with LSG Group's experienced management team to realize growth opportunities. We look forward to joining forces with the LSG Group team and the start of an exciting journey to an even more successful, independent company,” says Dirk Markus, founding partner of Aurelius.