Lufthansa Cargo is set to acquire German handler LUG Aircargo Handling from the Dettmer Group as part of efforts to position the company for future growth.
The acquisition will give Lufthansa Cargo access to approximately 50,000 sq m of covered warehouse space in Germany, as well as an additional 18,000 sq m of office and infrastructure space.
LUG has a presence at Frankfurt, Munich and Hamburg airports. The deal was signed on Monday but is subject to antitrust and regulatory approvals.
Lufthansa Cargo chief operating officer Frank Bauer said: “In an increasingly volatile market environment, we want to become more flexible, more efficient, and more resilient for our customers.
“That is why we are making targeted investments in our infrastructure in our home market in Germany to set the course to provide an even better offering for our customers and achieve profitable growth — this is a win-win situation for both companies.”
The cargo division said the transaction is “one of the key pillars” of its growth strategy and is intended to “create the infrastructural foundation for future profitable growth”.
“With the planned acquisition, Lufthansa Cargo will gain immediately available, additional handling capacity within Germany,” Lufthansa Cargo said.
The company said that LUG’s buildings would complement its existing handling infrastructure at Frankfurt, which is currently undergoing a €600m modernisation.
“This will enable the company to support future growth while continuing to provide high-quality and reliable services to its customers,” Lufthansa Cargo added.
LUG will continue to operate independently following the acquisition.
The Dettmer Group said LUG would be well-positioned for further growth under Lufthansa Cargo’s ownership.
LUG’s building in Frankfurt is located close to the apron and includes the central customs inspection office for CargoCity Süd as well as high-value and healthcare facilities.
Its Munich building includes 3,300 sq m of warehouse space, separate export and import areas, and x-ray facilities.
In Hamburg, the company has a 6,000 sq m warehouse located at the Airport Cargo Center, which opened in 2016 and is linked directly to the apron at Hamburg Airport.
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