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Lufthansa Sells LGM Group to Hochtief

Deutsche Lufthansa AG is selling the Lufthansa Gebäudemanagement (LGM) group to Hochtief Facility Management GmbH with effect from 1 June 2004, pending approval by the regulatory authorities.

The acquisition of the LGM group will make Hochtief one of the leading European providers of integrated facility management services with 4,500 employees and total revenues of around 450 million euros. LGM currently employs some 2,200 people, who are responsible for the group’s customers in Germany, Ireland, Poland, Hungary and South Africa. Last year the company achieved sales of more than 180 million euros.

Following the sale of GlobeGround, DHL and Amadeus, Lufthansa is steadily pursuing its policy of active portfolio management. “Divesting is the right decision for the LGM group and points the way forward. In Hochtief we have found an ideal partner who can offer the company and its staff excellent prospects for the future,” said Wolfgang Mayrhuber, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. “Regular monitoring and adjustment of our portfolio is part of our Group strategy. We are continuing to focus on the core competencies of our business segments, while at the same time strengthening LGM’s market position through the tie-up with Hochtief.”

Lufthansa and Hochtief have also signed a long-term facility management agreement which will cement their trusting partnership. Both sides have agreed not to disclose any details about the transaction.