Germany-based AviAlliance has announced the acquisition of AGS Airports — owner of Glasgow, Aberdeen and Southampton Airports — from Ferrovial and Macquarie for an enterprise value of £1.53 billion.
AviAlliance is the wholly-owned airports platform of the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors.
PSP’s other infrastructure investments include majority ownership positions in Forth Ports, one of the largest port operators in Scotland and England, and Angel Trains, the largest rolling stock company in the United Kingdom.
AviAlliance currently managing stakes in the airports of Athens, Düsseldorf, Hamburg, and San Juan (Puerto Rico). In 2023, these four facilities together handled 73 million passengers.
The transaction to buy AGS Airports is subject to regulatory approvals and is expected to complete in Q1 of 2025.
“These airports serve large and growing regions of the United Kingdom, significantly contributing to their local economies,” said AviAlliance.
“Operating within the attractive British air travel market, AGS Airports benefit from strong fundamentals and a continued demand for business and leisure travel, which is expected to drive growth in domestic and international passenger traffic.
“AviAlliance will leverage its extensive global airport expertise to responsibly develop AGS Airports, enhancing air connectivity, improve the passenger experience, and support local communities.”
Gerhard Schroeder, Managing Director of AviAlliance, said: “Aberdeen, Glasgow and Southampton airports provide vital connectivity for communities in Scotland and the South East of England.
“As a seasoned airport investor and manager with in-depth industry expertise, AviAlliance will enable each airport to realize their full potential.
“We are committed to supporting the airports over the long term to expand their route networks, further improve the passenger experience and implement the airports’ sustainability strategy.”
Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments at PSP Investments, said: “PSP Investments is a significant investor across several sectors in Scotland and more broadly, the United Kingdom, with over £10bn of investments in the United Kingdom.
“Our PSP Infrastructure strategy consists of investing in sectors where PSP Investments has strong expertise and a track record of delivering value for our beneficiaries. Airports is a sector which fits that strategy given AviAlliance’s deep operational expertise.
“We are delighted to add AGS Airports to our infrastructure portfolio and look forward to working with our key stakeholders to improve services to the communities in which AGS Airports operate, recognizing the critical role that these airports play in supporting economic growth in Scotland and England.”
Andy Cliffe, Chief Executive Officer of AGS Airports, said: “Over the past 10 years, Macquarie and Ferrovial have played a central role in unlocking our full potential. Their close partnership with the teams across our three airports ensured we had the support to invest in our passenger offering while improving our operations.
“We are grateful for their close stewardship and look forward to continuing to develop our services and beneficial impact on passengers and communities across the regions of Aberdeen, Glasgow and Southampton.”
Ferrovial said in a statement: “Ferrovial announces that an agreement has been reached with Avialliance UK Limited for the sale of its entire stake (50%) in AGS Airports Holdings Limited (AGS), the parent company owning the Aberdeen, Glasgow and Southampton Airports.
“As part of the agreement, Macquarie (Ferrovial’s joint venture partner in AGS) will also sell its entire stake (50%) in AGS.
“The agreement values 100% of the stake at £900 million, representing the equity value for a 100% interest in AGS and is subject to certain closing adjustments and transaction costs. Net equity proceeds to Ferrovial will be determined at completion. This price represents an Enterprise Value (EV) estimated at £1.535 billion.
“Completion of the disposal is subject to satisfaction of applicable regulatory approvals and is expected to close in Q1 2025. The estimated capital gain to be recognized by Ferrovial at completion is around 290 million euros.”
Martin Bradley, Head of Infrastructure for Macquarie Asset Management in EMEA, said: “Since 2014, we have worked in partnership with Ferrovial to support around £250 million of investment by AGS Airports aimed at delivering a better experience for passengers travelling via Aberdeen, Glasgow and Southampton airports.
“Following this decade of investment, we are pleased to be passing the baton to AviAlliance to unlock the next phase of growth.”