AURELIUS acquires global market leader LSG Group from Lufthansa

AURELIUS acquires global market leader LSG Group from Lufthansa

• Leading global airline caterer with USD 2bn in revenue
• Delivery of a highly complex carve-out on a global scale
• AURELIUS’ operational taskforce to support growth accelerating the LSG Group’s strategy
• Expansion into North America further strengthens AURELIUS´ global footprint

Luxembourg/Munich, April 5, 2023 – AURELIUS announces the acquisition of the LSG Group International from Deutsche Lufthansa AG.  The company is a leading global integrated airline caterer and onboard retail provider. In recent years, the LSG Group has also developed an expansive presence across the growing food commerce industry. The transaction is expected to close in Q3 2023, subject to approval by the relevant competition and regulatory authorities.

Today, the LSG Group is present in 49 countries. Together with its partners, the company is serving its global clients around 275 million classic airline catering meals per year. The LSG Group is headquartered in Neu-Isenburg, near Frankfurt, Germany. The carve-out transaction includes all classic catering, onboard retail and food commerce activities, and the LSG Group’s brands with all 131 LSG Sky Chefs Customer Service Centers in the Americas, Emerging Markets and Asia-Pacific regions. Additionally, the acquisition includes the onboard retail expert Retail inMotion, based in Europe, and SCIS Air Security Services in the US. The LSG Group employs around 19,000 staff worldwide and has 36 joint ventures across the globe. LSG Sky Chefs activities in Europe were already sold in 2019 to gategroup.

The LSG Group has evolved to become one of the industry’s most influential companies by establishing a brand built on fostering long-term customer relationships, best-in-class operations, a global network of facilities and culinary and service excellence.

“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.

“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,” said Remco Steenbergen, Chief Financial Officer, Deutsche Lufthansa AG.

The LSG Group generates revenues of approx. USD 2.0bn with margins recovering from the challenging environment, experienced particularly by the aviation industry during the COVID pandemic. Throughout the last years, the LSG Group has demonstrated strong performance by adapting swiftly and putting the needs of their customers first.

Supported by AURELIUS´ operational specialists, the LSG Group is well-positioned to capture the growth opportunities available to the company by successfully executing on the strategy already in place, as the post-pandemic travel recovery continues, and various competitive advantages are ready to be leveraged.

“Finding a trusted partner for complex challenges is a crucial element to the ongoing success of the LSG Group. The company has undergone extensive transformation during the pandemic. By offering hands-on co-operative support on the ground, AURELIUS provides the experience and resources needed to support the LSG Group in entering a new chapter of standalone business success”, comments Erdmann Rauer, CEO of the LSG Group.

“We are very pleased to have accomplished delivering this complex transaction jointly with the Lufthansa team and look forward to supporting the LSG Group team in developing this great company. Specifically, we will focus on organic and inorganic growth through further add-on acquisitions”, comments Franz Woelfler, Partner at AURELIUS.

Since 2022, the outlook is brightening with the global aviation market recovering to travel levels seen before the pandemic. This is especially true for the North American region which has already reached pre-pandemic levels. AURELIUS will seek to use its experience as a market leader for corporate carve-outs to support the smooth transition of the LSG Group from being a Lufthansa subsidiary to becoming a thriving standalone business.

 
ABOUT AURELIUS

AURELIUS is a pan-European alternative investment firm. Deep operational expertise and experience enable AURELIUS to accelerate value creation within its portfolio companies. The Group has offices in London, Luxembourg, Munich, Amsterdam, Stockholm, Madrid, Milan and Dusseldorf.

Our key investment platforms are AURELIUS European Opportunities IV fund and the listed AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8, Ticker Symbol: AR4), which specialise in corporate carve-out transactions and acquiring companies with development potential in the mid-market. The investment strategy’s core element is growth of its portfolio companies, supported by a team of almost 100 operating taskforce experts.

AURELIUS Group additionally operates in the areas of growth capital, real estate and alternative lending solutions. AURELIUS Growth Investments is focused on transactions involving buy-and-builds, buyouts and succession solutions across the small cap sector. AURELIUS Real Estate Opportunities focuses on real estate investments, the value of which can be increased in the long-term by means of active management. AURELIUS Finance Company provides flexible lending solutions to firms across Europe.

With its group charity AURELIUS Refugee Initiative e.V., AURELIUS provides comprehensive support to refugees on their way towards a better life.

To find out more, visit www.aurelius-group.com

CONTACT

AURELIUS Group
Investor Relations
Phone: +49 (89) 544799 – 0    +44 (0) 20 7440 0480
E-mail: investor@aurelius-group.com

 
ABOUT THE LSG GROUP

The LSG Group is the quality and technology leader in airline catering and related markets. It has two strong, independent expert brands: LSG Sky Chefs as a global catering specialist with the highest hygiene and quality standards for airlines, the home-delivery market and retail. Retail inMotion, which specializes in in-flight sales, product development and technology solutions, sets standards with its understanding of partnership and its innovative strength.

The LSG Group (International) is headquartered in Neu-Isenburg, near Frankfurt, Germany, and has an extensive network of joint ventures and partnerships around the globe. In the ramp-up year 2022, its 18,778 FTE’s at 131 locations in 49 countries worldwide generated a consolidated revenue of 1.960 million euros. LSG Sky Chefs, in collaboration with its joint venture partners, produced 275 million airline catering meals and 33 million food commerce units during this period. www.lsg-group.com