Hahn & Co. is selling back Korean Air’s in-flight catering and duty-free retail business to the airline for 750 billion won ($503 million), more than five years after acquiring the unit during the COVID-19 pandemic.
The private equity firm said Thursday it has signed definitive agreements to sell its 80 percent stake in Korean Air Catering & Duty Free Service (Korean Air C&D) to the flag carrier. The deal covers 5.01 million shares and is expected to close for about 750 billion won.
Once completed, Korean Air will hold 100 percent ownership of Korean Air C&D, including the 20 percent stake it previously retained, making the unit a wholly owned subsidiary.
Hahn & Co. acquired the majority stake in December 2020, when Korean Air sold the business to raise cash amid a severe liquidity squeeze during the COVID-19 pandemic.
Korean Air C&D is the country’s largest operator of in-flight catering and onboard duty-free retail services, supplying meals and retail products to Korean Air as well as other major international airlines at Incheon and Gimpo airports, according to Hahn & Co.
Korean Air said the reacquisition will help secure stable catering operations as the airline integrates its business following the takeover of 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 said.
Under Hahn & Co.’s ownership, Korean Air C&D reported 94.9 billion won in operating profit and 124.1 billion won in EBITDA in 2025.
The transaction values the company at about 1.7 trillion won, a sharp increase from 990 billion won when Hahn & Co. acquired the business in 2020.
silverstar@heraldcorp.com
