GERMAN private equity firm Buchanan Capital Partners has acquired a 51 per cent stake in Lufthansa Cargo's wholly-owned subsidiary, time:matters GmbH, for an undisclosed amount.

The partnership, involving re-investment on Lufthansa's part, aims to give the Neu-Isenburg-based logistics company the financing needed to expand in global markets.

"With the buyout, we are taking time:matters nearer to becoming the European market leader in courier, same-day and emergency logistics by 2010," said Roland Busch, Lufthansa Cargo board member for finance and human resources, who retains his seat on the advisory board of time:matters. All 45 of time:matters staff will remain.

"The new ownership structure generates a tailwind to help us take the company to the next level and realise growth potential. We are looking forward to a good future with strong partners who are injecting not only capital, but outstanding industry contacts and expertise," said Franz-Joseph Miller, managing director of time:matters.

"Since its spin-off five years ago, time:matters has achieved yearly revenue growth of more than 30 per cent and has evolved into an established specialist for express and emergency logistics," Mr Miller said.

The Starnberg-based mid-market finance house intends to pursue the private equity model that focuses on growing profitable medium-size companies using longer-term partnerships and co-operation, according to the Lufthansa statement.

Typically, Buchanan Capital Partners, a member of the Buchanan Capital Group, either takes minority stakes in medium-size firms or acquires a majority holding in buyouts.