Lufthansa Group has formally opened the bidding process for its catering arm LSG Sky Chefs, Reuters has reported. The German group is hoping to sell the subsidiary to an industrial partner.
"Potential investors are being invited to make their bids," the group spokesperson confirmed.
Vienna-based Do & Co and Switzerland's Gategroup, recently sold by HNA Group to RRJ Capital, are reportedly planning to submit bids for LSG Sky Chefs.
The German catering firm is profitable but operates at very low margins. Lufthansa Group CEO Carsten Spohr previously complained about LSG Sky Chefs' geographical spread, high staff costs, and exposure to currency exchange rate fluctuations. In 2018, the unit posted an adjusted EBIT profit of EUR115 million euros (USD130 million) at an adjusted EBIT margin of 3.6%.
