Agility, an aviation services provider based in Kuwait, has finalised its acquisition of UK-based John Menzies in a deal valued at USD921.7 million, and one which will create the largest aviation services provider in the world, based on the number of airports served.
Agility is slated to combine the acquired company with its subsidiary, National Aviation Services (NAS). The new entity will be named Menzies Aviation and will operate with a presence in 58 countries around the world.
In a joint statement released by the companies, it was stated the combined revenue of the two entities exceeded USD1.5 billion in 2021. Future plans include hiring an additional 35,00 staff, operating at 254 airports at various locations, handling 600,000 aircraft turns, over 2 million tonnes of cargo, and 2.5 million fuelling turns per year.
Agility’s closest rival in the region, is Dubai-located dnata, a part of the Emirates Group. Dnata currently provides ground handling services at 86 different airports.
Former CEO of NAS, Hassan El-Houry, who will take on the role of chairman of the combined entities, stated that the company will have the resources and scale to expand exponentially as the industry rebounds from the Covid-19 pandemic restrictions.
He further added that commercial aviation was a key driver of global economic growth, and stated that the company’s customers would require reliable partners as flight volumes return to normal.
Agility agrees to acquire 100 percent of Menzies shares for cash
The boards of the two companies agreed in March on Agility’s cash offer to acquire 100 percent of Menzies’ shares, which were trading on the London Stock Exchange at the rate of 608 pence per share.
The acquisition by Agility values Menzies at almost GBP571 million on a fully diluted basis, and almost GBP763 million on an enterprise value basis.
Representatives of Agility informed Boursa Kuwait that trading of Menzies’ shares on the London Stock Exchange will be canceled today by 7 am UK time.
Menzies’ history
John Menzies, founded in 1833 is the holding company of Menzies Aviation, headquartered in Edinburgh, Scotland. The company first started as a bookseller at railway stations, after which it incorporated warehousing abilities. The company later focused on aviation services with the acquisition of Scan International and Cargosave in 1987.