Swissport has signed binding transaction agreements to acquire ASC, which provides ground handling and cargo services at London Heathrow and Gatwick airports.
The takeover supports Swissport's continued growth in the UK and provides it with additional ground and cargo handling capability at the airports, as well as access to additional cargo capacity at two warehouses at London Heathrow.
In 2023, 48% of all UK air cargo was processed through Heathrow in 2023. This amounts to 70% of all UK air cargo by value. Over 198.5bn worth of goods travelled through Heathrow in 2023.
Gatwick has £2.2bn expansion plans, including puting its northern runway into regular use. If given approval, Gatwick figures show this would bring in an additional 60,000 flights per year and boost cargo volumes to 161,500 tonnes by 2038 compared with 61,000 tonnes in 2023 and more than double 2019 levels.
At the beginning of this year, Air Cargo News reported that Swissport UK & Ireland had set its sights on growth as it continued to add capacity by opening facilities at key cargo hubs.
Warwick Brady, president and chief executive of Swissport International said: “The UK is one of our core markets worldwide. Strengthening our presence in the country is a key pillar of our growth strategy.
"Swissport has a clear M&A strategy to enhance our platform in markets where we can optimise growth, margin and resilience across the portfolio. We will continue to pursue our ambitious expansion agenda by combining strong organic growth and strategic M&A in critical geographic markets across our ground handling, cargo and hospitality businesses globally providing a world class service to our customers."
Karen Cox, Swissport’s chief executive for the UK and Ireland, commented: “We are really excited about the opportunities this agreement provides to enhance our services and further grow our offerings in the UK.
"Swissport and ASC share the same values of safety, operational excellence, customer focus and innovative technology solutions. This means brilliant opportunities for our employees as they are part of a growing, global company in a thriving sector. We are very much looking forward to welcoming ASC into the Swissport family.”
Ignazio Coraci, chairman of the board of ASC, said: “This agreement will give our customers, employees and partners the opportunity to benefit from Swissport’s extensive global footprint with a broader range of services across its network.
"By combining our experienced teams with a proven track record of consistent high quality service delivery we will continue strengthening resilience and driving greater efficiency to our airline partners through our integrated and comprehensive service offering.”
This transaction is subject to customary closing conditions.
