New York-based Blackstone announced on Friday that its infrastructure strategy for individual investors has agreed to acquire a minority stake of 22% in AGS Airports — owner of Glasgow, Aberdeen and Southampton Airports — from Germany-based AviAlliance for £235 million.
AviAlliance announced the acquisition of AGS Airports from Ferrovial and Macquarie in November 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.
“Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the continued growth of the travel and tourism industries across the United Kingdom,” said Blackstone.
“AviAlliance, one of the world’s leading airport investors and operators, will remain the majority shareholder in AGS with a 78% stake.
“AGS handles over eleven million passengers annually and is the owner and operator of three critical UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.”
Blackstone CEO Greg Blank said: “Transportation remains a key thematic focus area for Blackstone, given continued strong global growth in leisure travel.
“AGS has access to one of the most diversified airline mixes of any major UK airport, and the company’s recent capital improvements aimed at accommodating large aircraft pave the way for new routes and higher traffic growth. We look forward to partnering with AGS to support this important growth in the United Kingdom.”
Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments, said: “We are pleased to bring Blackstone as a minority shareholder in AGS. Both PSP and Blackstone are like-minded investors with long-term patient capital to support the development of AGS, which will benefit from the operational expertise of AviAlliance.”
AviAlliance MD Gerhard Schroeder said: “We look forward to developing a constructive and long-term partnership with Blackstone for the benefit of AGS, its management and employees, as well as all other stakeholders at the three airports. Together, we will further strengthen the position of AGS in both Scotland and the wider United Kingdom.”