Agility, a supply chain services, infrastructure and innovation company, has completed the acquisition of UK-based John Menzies.
Agility will combine the business with its National Aviation Service (NAS) business, which will operate as Menzies Aviation after the integration. It will be the world’s largest aviation services company by number of countries and the second largest by number of airports served.
The combined company will provide air cargo, fuel and ground handling services at airports on six continents. Menzies and NAS combined revenue to exceed US$1.5 billion in 2021. The new company will have approximately 35,000 employees and will operate at 254 airports in 58 countries, handling 600,000 aircraft turnarounds, 2 million tons of air cargo and 2.5 million refuelings per year.
“Menzies and NAS will create a global leader in aviation services,” said Hassan El-Khoury, who will become chairman of the combined company after previously serving as NAS CEO. “We will have the scale and resources to expand and grow as the industry recovers from the Covid-19 pandemic. Commercial aviation is a key driver of global economic growth, and our customers need partners they can rely on as flight volumes return.”
The company’s clients will be Air Canada, Air China, Air France-KLM, America Airlines, British Airways, Cathay Pacific, EasyJet, Emirates, Ethiopian, FlyDubai, Frontier Airlines, IAG, Jazeera, Qantas Group, Qatar Airways, Southwest, Turkish, United Airlines , WestJet and Wizz Air.
Menzies Aviation CEO Philip Yonig commented: “The combination of Menzies and NAS will provide our customers with world-class service, enhanced product offerings and industry-leading airport security practices across six continents. Agility’s support provides us with the resources to deliver innovative solutions to growing and prospective customers, and to develop our talent, technology and sustainability; critical factors for our future success. It also means we are well-positioned to support our customers in addressing their supply chain and labor shortage challenges.”
Agility Vice Chairman Tarek Sultan said: “This is a new chapter for Agility, Menzies and NAS. By acquiring Menzies and combining it with NAS, Agility will be able to unlock more value in both. Agility has a strong track record of sustainable and responsible growth over the past two decades, driven both organically and through mergers and acquisitions, and this latest transaction is part of our strategy to further accelerate that growth. For Agility, the transaction creates the largest owned and operated – “controlled” – business in the Agility portfolio by revenue, headcount and global presence. We look forward to seeing the new Menzies rise with the support of Agility.”
On March 30, the boards of Agility and Menzies reached an agreement on Agility’s all-cash offer to acquire 100 per cent of the London Stock Exchange-traded ordinary shares of Menzies for 608p per share. The deal values Menzies at approximately £571m on a fully diluted basis and approximately £763m on an enterprise value basis.
https://www.aviationbusinessnews.com/cargo/latest-news-cargo/agility-finalises-763-million-acquisition-of-menzies-aviation/ Agility completes £763m acquisition of Menzies Aviation