Aurelius Sells LSG Asia-Pacific to Japanese Buyers

Aurelius has finalized an agreement to divest its Asia-Pacific catering operations, LSG APAC, to a strategic consortium formed by Japanese food industry stalwarts Kobe Bussan Co., Ltd. and GOURMET KINEYA Co., Ltd. This move marks the culmination of Aurelius's successful turnaround strategy for the business, which it acquired as part of a larger deal involving the LSG Group from Deutsche Lufthansa in 2023.

The divestiture follows a period of intensive operational enhancement by Aurelius. Upon acquisition, the firm deployed its specialized WaterRise operational team to establish independent corporate structures and drive significant improvements across LSG APAC's extensive network. This network spans key markets including Hong Kong, New Zealand, South Korea, Thailand, Canada, and Micronesia, encompassing various joint ventures.

Under Aurelius's stewardship, LSG APAC has been transformed into a self-sufficient regional leader. The company has achieved robust organic expansion and surpassed pre-pandemic profitability levels, demonstrating strong operational performance. This success underscores Aurelius's expertise in executing complex carve-outs and revitalizing underperforming assets within the aviation services sector, a segment that has seen significant disruption and consolidation post-pandemic.

Janno Gröne, Senior Managing Director at Aurelius WaterRise, expressed pride in the collaborative effort, stating, “We are particularly proud of the close collaboration and excellent teamwork between Aurelius WaterRise and LSG APAC throughout this journey.” He extended gratitude to the LSG team and its clientele for their dedication and continued patronage.

Fabian Steger, Managing Director at Aurelius Funds IV and V, highlighted the swift and effective execution of the strategy. “The investment in LSG APAC as part of the wider LSG Group, including LSG Sky Chefs, has been a great success for Aurelius. I am proud of what was achieved in such a short timeframe. Executing a full carve-out from Lufthansa across multiple jurisdictions while simultaneously managing a post-pandemic recovery is no mean feat, and all parties involved delivered at the highest level,” Steger commented.

The acquisition by Kobe Bussan and GOURMET KINEYA positions LSG APAC for its next phase of growth, leveraging the combined strengths and market presence of the Japanese acquirers. This transaction is expected to close in the third quarter of 2026, pending regulatory approvals. The aviation catering market, a critical component of the travel industry, continues to evolve, with strategic consolidation and operational efficiency being key drivers for success.