LONDON – Kuwait’s Agility Supply Chain Services and Innovation announced last Thursday that it has completed the acquisition of UK-based John Menzies plc – Menzies Aviation.
Agility will combine Menzies Aviation operations with those of National Aviation Services (NAS) to create a world-leading aviation services company operating in 58 countries.
The boards of Agility and Menzies reached an agreement on March 30 of this year regarding Agility’s cash offer to acquire 100% of Menzies’ shares, which are traded on the London Stock Exchange, for 608 pence per share.
The deal values Menzies at £571 million on fully diluted earnings per share basis and about £763 million on a company value basis.
Once the two companies are merged, the new company will begin operations as Menzies Aviation and will become the world’s largest aviation services provider by number of countries and the second largest by number of airports it serves.
It is noteworthy that the new company “Menzies Aviation” will provide air freight, fuel services and ground handling services at airports across six continents. Menzies and NAS have combined revenues of more than $1.5 billion in 2021.
The company will have approximately 35,000 employees and will extend its operations at 254 airports in 58 countries, handling 600,000 flights and 2 million tons of air cargo and aircraft supply annually. 2.5 million tons of fuel.
“Menzies and NAS will form a world leader in aviation services,” said Hassan Al-Houri, the combined chairman and former CEO of NAS.
“We will have the scale and resources needed to expand and grow as the sector recovers from the Covid-19 pandemic, as commercial aviation is a major driver of global economic growth, and our customers really need partners they can rely on as flight volumes increase again.”
The company’s clients will include: Air Canada, Air China, Air France, KLM Royal Dutch Airlines, American Airlines, British Airways, Cathay Pacific, EasyJet, Emirates, Ethiopian Airlines, flydubai, Frontier Airlines, IAG, Jazeera Airways, Qantas Group, Qatar Airways, Southwest Airlines, Turkish Airlines, United Airlines, WestJet and Wizz Air.
Philipp Joeinig, CEO of Menzies Aviation, who will be CEO of the combined company, said: “As a result of the combination of Menzies and NAS, our customers will have access to world-class service, more diversified product offerings, and safety best practices at airports across six continents.”
“Agility’s support will give us the resources to provide innovative solutions to our growing customers who are considering enhancing their future growth, as well as developing our capabilities, technologies and sustainability.”
“They are essential for future successes. It also means that we are well positioned to support our customers in the face of supply chain challenges and labor shortages.”
Tarek Sultan, Vice Chairman of Agility, explained: “By acquiring Menzies and bringing it into NAS, Agility has the opportunity to maximize value for both. This transaction is part of our strategy to accelerate such growth.”
“For Agility, this transaction will create the largest owned and operated company within the Agility controlled entities in terms of revenue, number of employees and global presence.”