Lufthansa is consistently continuing its consolidation strategy at LSG Sky Chefs. Negotiations on…
Lufthansa is consistently continuing its consolidation strategy at LSG Sky Chefs. Negotiations on the sale of LSG`s US subsidiary Chef Solutions have been concluded as a further step in the implementation of plans announced byLufthansa`s Chairman and CEO Wolfgang Mayrhuber to focus business at LSG on airline catering.
LSG Lufthansa Service
Holding AG (LSG Holding) is selling Chef Solutions to funds managed by the American financial investor Questor. The transaction was approved today by the LSG Holding Executive Board. The Lufthansa Executive Board is pressing firmly ahead with the rehabilitation of unprofitable Group businesses. Divestment of Chef Solutions shows that those plans are being determinedly implemented in order to reinstate LSG`s core airline catering business on a profitable footing.
The Convenient Meal Solutions business segment, operating under the `Chef Solutions` brand in the USA since 2000, produces pre-prepared convenience food for the retail and food service industry. Chef Solutions operates 14 facilities in North America and employs a workforce of 2,600 staff. In 2003, it generated about 17 per cent of the LSG Group`s total revenues of 2.7 billion euros.
Questor is a private equity firm with offices in Southfield, Michigan and New York. Questor`s objective is to acquire businesses that are in transition and offer the potential for superior returns with the application of appropriate levels of capital and management expertise. Since it was founded in 1995, the company has successfully completed more than 20 investment deals worldwide, including the purchase of Geologistics, one of the world`s largest global freight forwarding and logistics services providers, Teksid Aluminum, Fiat`s aluminum foundry business, and coal assets formerly owned by United States Steel Corporation. Questor manages over 1.1 billion US dollars of committed equity capital.
This latest transaction, together with its disposal of stakes in LGM (pending regulatory approval), Amadeus, DHL and GlobeGround, is consistent with Lufthansa`s policy of active portfolio management. Ongoing monitoring and adjustment of the portfolio is part of corporate strategy. The two partners in the Chef Solutions deal have agreed not to disclose details of the transaction. The sale still requires the endorsement of the Lufthansa and LSG Holding Supervisory Boards and the US anti-trust authorities.
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