Menzies and NAS finalise £571m takeover deal
30 / 03 / 2022
Menzies will recommend to shareholders a takeover offer from Agility subsidiary National Aviation Services (NAS) that values the company at £571m.
The two companies today announced they reached agreement on the terms of a recommended cash offer to acquire 100% of the ordinary shares in Menzies at a price of £6.08 per share.
Last month, Menzies indicated that it would accept the offer and gave NAS access to management and due diligence information so it could finalise its offer.
Now that a recommended offer has been announced, the next steps are to seek approval from Menzies shareholders as well as the relevant regulatory authorities.
It is currently expected that the transaction will complete in the third quarter of 2022.
The combined group is expected to be the largest airport services company in the world by the number of countries it operates in, second largest in terms of airports served, and third largest in terms of revenue.
The combination of Menzies and NAS had revenues in excess of $1.5bn last year, 35,000 employees, a presence at more than 250 airports in 57 countries and handle more than 600,000 aircraft turns per year.
Hassan El-Houry, chief executive of NAS, said: “The NAS-Menzies combination brings together highly complementary operations and ensures that the combined business has the scale and resources to grow.
“Menzies shareholders will realize a premium in return for supporting the transaction. Customers will benefit from Menzies’ operational excellence at more airports around the world and will be able to choose from a broader product offering. Employees of both companies will benefit from being part of a larger, stronger group that offers more career development and advancement opportunities.
“The combined business will have the capital to invest in the talent, technology, innovation, infrastructure, equipment, and sustainability leadership required to accelerate growth.”
This follows earlier approaches from NAS to the board regarding possible all cash offers for Menzies at 460 pence, 510 pence and 605 pence per Menzies share.