Agility finalises Menzies acquisition
04 / 08 / 2022
By Rebecca Jeffrey
Agility has finalised its acquisition of UK-based John Menzies PLC and will combine the business with its National Aviation Services (NAS) business.
The boards of Agility and Menzies reached agreement on March 30 on Agility’s cash offer to acquire 100% of Menzies ordinary shares following a series of exchanges between the companies.
Once integrated, 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.
Menzies Aviation will provide air cargo services, fuel services and ground services at airports on six continents. Combined revenues of Menzies and NAS exceeded $1.5bn in 2021.
The new company will have approximately 35,000 employees and operations at 254 airports in 58 countries, handling 600,000 aircraft turns, 2m tonnes of air cargo and 2.5m fuelling turns per year.
“Menzies and NAS will create the world leader in aviation services,” said Hassan El-Houry, who becomes chairman of the combined company, having previously held the role of NAS chief executive.
“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.”
The company’s customers will include Air Canada, Air China, Air France-KLM, America 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.
“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 Menzies Aviation chief executive Philipp Joeinig, who will be chief executive of the combined company.
“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 labour shortages.”
The deal values Menzies at approximately £571m on a fully diluted basis and approximately £763m on an enterprise value basis.