The £571 million cash takeover of Edinburgh-based airport logistics giant John Menzies plc by Kuwait-based National Aviation Services (NAS), a subsidiary of Agility Public Warehousing Company, has been finalized.
The acquisition price of £6.08 per share represented a premium of 81% to the Menzies closing share price of £3.35 on February 8, 2022, the last business day prior to the offer period.
“Once integrated, the combined company will operate as Menzies Aviation and will be the world’s largest aviation services company by number of countries and second largest by number of airports served,” said Agility.
“Operating as Menzies Aviation, the combined company will provide air cargo services, fuel services and ground services at airports on six continents.
“Combined revenues of Menzies and NAS exceeded $1.5 billion in 2021.
“The new company will have approximately 35,000 employees and operations at 254 airports in 58 countries, handling 600k aircraft turns, 2 million tonnes of air cargo and 2.5 million fuelling turns per year.”
The combined company’s customers will include 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.
Hassan El-Houry, who becomes chairman of the combined company, said: “Menzies and NAS will create the world leader in aviation services.
“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 engine of global economic growth, and our customers need partners they can count on as flight volumes return.”
Menzies Aviation CEO Philipp Joeinig, who will be CEO of the combined company, said: “With the combination of Menzies and NAS, our customers will receive world-class service, expanded product offerings, and the industry’s best safety practices at airports on six continents.
“Agility’s backing gives us the resources to provide innovative solutions for growing and forward-thinking 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 tackling supply chain challenges and labor shortages.”
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 has the opportunity to unlock greater value in both.
“Agility has a strong track record of sustainable and responsible growth over the last two decades, driven both organically and through mergers and acquisitions, and this latest deal is part of our strategy to further accelerate that growth.
“For Agility, this deal creates the largest owned and operated – ‘controlled’ – business in Agility’s portfolio by revenue, headcount, and global presence.
“We’re looking forward to seeing the new Menzies soar with Agility’s backing.”