Hahn & Co. is set to sell Korean Air’s in-flight catering and duty-free retail services back to the airline for approximately 750 billion won ($503 million). This move comes over five years after the private equity firm initially acquired the unit during the height of the COVID-19 pandemic.
The firm announced Thursday that it has reached definitive agreements to sell its 80 percent stake in Korean Air Catering & Duty Free Service (Korean Air C&D) back to the South Korean flag carrier. The agreement covers 5.01 million shares and is expected to finalize at a price of around 750 billion won.
Upon completion of the transaction, Korean Air will regain 100 percent ownership of Korean Air C&D, including the 20 percent stake it had previously retained. This will make Korean Air C&D a wholly owned subsidiary of the airline.
Hahn & Co. originally acquired the majority stake in December 2020, when Korean Air divested the business to bolster its finances amid a severe liquidity crisis triggered by the COVID-19 pandemic and related travel restrictions.
Korean Air C&D is recognized as the leading provider of in-flight catering and onboard duty-free retail services in South Korea. The company supplies meals and retail products to Korean Air, as well as other major international airlines operating at Incheon and Gimpo International Airports, according to Hahn & Co.
Korean Air stated that the reacquisition will play a crucial role in ensuring stable catering operations as the airline proceeds with integrating its business following the anticipated merger with Asiana Airlines.
“With the launch of the integrated airline, Korean Air aims to ensure a stable inflight catering supply and strengthen service competitiveness through the acquisition of Korean Air C&D,” the company stated in a press release.
During Hahn & Co.’s ownership, Korean Air C&D reported an operating profit of 94.9 billion won and an EBITDA of 124.1 billion won in 2025, showcasing significant financial performance.
The current transaction values Korean Air C&D at approximately 1.7 trillion won, representing a substantial increase from the 990 billion won valuation when Hahn & Co. initially acquired the business in 2020.
silverstar
