Lufthansa Cargo has filed an application at the German competition authority Bundeskartellamt to increase their equity participation from 49% to 100%, thus becoming the sole shareholder of time:matters GmbH. Vendors are Aheim Capital Funds and the management of time:matters who together are the current majority owners. It is expected that the regulator will rubber-stamp the transaction.
Since years, time:matters reports exceptional growth figures that are often double-digit. According to last year’s financial results, the specialist in tailored same day transports and emergency
logistics reports an 8% increase in revenue y-o-y, totaling €64 million. This continuous business success has not escaped the attention of its shareholder LH Cargo and seems to have motivated
Aheim Capital together with time:matters’ top management that the time is very favourable to sell their shares to Lufthansa Cargo. Presumable, to an attractive price! The parties involved did not
disclose financial details.
In line with LH Cargo’s strategic alignment
In a nutshell, the seller is interested in making cash, while LH Cargo intends to reintegrate a growth promoter and profit generator. Although the carrier refuses to comment on the intended deal since the regulator hasn’t given its green light yet, it can be assumed that the upcoming transaction is fully in line with LH Cargo’s strategic repositioning. This is evidenced by the management’s two-pronged strategy to implement saving programs on the one hand and foster growth at the same time, shown by their announcement to soon launch new products complemented by market initiatives (CargoForwarder Global reported).
According to internal information, neither the management structure nor the business strategy of time:matters and its extremely successful spinoff Liefery, guaranteeing local online shoppers delivery times of only 90 minutes, will be changed after the takeover is completed. “Their management will remain being in place and continue to be responsible for setting the specialist’s further course. Nor will their very successful business model be touched in any way,” a source close to the issue, who did not want to be quoted told CargoForwarder Global.
Closing the circle
The reintegration of time:matters into the Lufthansa Cargo fold is like the closing of a circle, since it was the carrier that back in 2002 founded the former “Lufthansa Cargo SameDay World GmbH,” which later became time:matters GmbH.
Five years later, in 2007, in the course of a management buyout investor Aheim Capital and the specialist’s top management became majority stakeholders (51%), with LH Cargo retaining the difference.
Now the reset button is being pressed, leading to time:matters’ coming home as a full member of the LH club. It won’t last long since the competition authority’s decision in favour of the transaction is expected within the next two weeks.