Integrated infrastructure services company Bluspring Enterprises has agreed to acquire the entire shareholding of LSG Sky Chefs (India), via the former’s subsidiary Bluspring New Horizon Two.
The move represents Bluspring Enterprises’ entry into the aviation catering business.
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Financial details of the transaction were not disclosed. However, Business Standard reported that Bluspring acquired LSG India for a total consideration of Rs1.29bn ($13.8m).
Ultimately owned by private equity company Aurelius Group, LSG India runs airline catering units at the airports in Bengaluru and Hyderabad. The business supplies in-flight meals and related aviation services to both domestic and international carriers such as IndiGo, Lufthansa, Etihad and Qatar Airways.
Under the proposed deal, Bluspring New Horizon Two will acquire the Bengaluru operations. The Hyderabad operations will be separated from LSG India ahead of completion.
The Bengaluru facility covers 9,272m², with the capability to produce 15,000 meals daily and scope for further expansion. The operation has around 400 employees.
Through this acquisition, Bluspring will obtain access to in-flight catering operations at Bengaluru’s airport under a long-term concession that runs until 2039.
Completion of the transaction is anticipated within the next 60 to 90 days, subject to standard closing conditions.
Bluspring Enterprises executive director and CEO Kamal Pal Hoda said: “This acquisition marks a strategic milestone for Bluspring as we enter the aviation services ecosystem through a high-quality operating asset at Bengaluru Airport.
“It gives us immediate scale in a niche, high-entry-barrier segment while creating opportunities to expand into adjacent airport-linked services.
“The business complements our existing food services vertical, significantly expanding margins and ROE [return on equity], and supports our long-term growth and profitability ambitions.”
