Dubai: Kuwait-based logistic firm Agility said it has completed its acquisition of UK-based John Menzies PLC and will combine the business with its National Aviation Services (NAS).
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 in a statement.
The new entity 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 600,000 aircraft turns, 2 million tonnes of air cargo and 2.5 million fuelling turns per year.
“Menzies and NAS will create the world leader in aviation services,” said Hassan El Houry, who will become chairman of the combined company, having previously held the role of 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 engine of global economic growth, and our customers need partners they can count on as flight volumes return,” said El Houry.
The company’s customers will include Air Canada, Air China, Air France-KLM, American 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 head Philipp Joeinig will be CEO of the combined company.
“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,” said Joeinig.
“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,” said Joeinig.
The boards of Agility and Menzies reached agreement March 30 on Agility’s cash offer to acquire 100 per cent of Menzies ordinary shares, which traded on the London Stock Exchange, for 608 pence a share. The deal values Menzies at about 571 million pounds (Dh2.54 billion) on a fully diluted basis and close to 763 million pounds (Dh3.39 billion) on an enterprise value basis.
“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,” said Tarek Sultan said, Agility’s Vice Chairman.