Combination with National Aviation Services creates a leading global player in air cargo handling and aviation services with operations at 254 airports in 58 countries, handling 2 million tonnes of air cargo
By Will Waters
Supply chain services, warehousing infrastructure and airport services specialist Agility has finalised its £763 million (US$925 million) acquisition of Menzies Aviation’s holding company John Menzies PLC and will combine the acquired business with its National Aviation Services (NAS) business to create a leading global player in air cargo handling and aviation services.
Operating as Menzies Aviation, the combined company will provide air cargo services, fuel services and ground services at airports on six continents. Once integrated, the company will be the world’s largest provider of air cargo and airline ground services by the number of countries it operates in and the second largest by number of airports served.
It will have approximately 35,000 employees and operations at 254 airports in 58 countries, handling 2 million tonnes of air cargo, 600,000 aircraft turns, and 2.5 million fuelling turns per year. Combined revenues of Menzies and NAS exceeded US$1.5 billion in 2021.
Hassan El-Houry, who becomes chairman of the combined company, having previously held the role of NAS CEO, commented: “Menzies and NAS will create the world leader in aviation services. 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.
Menzies Aviation CEO Philipp Joeinig, who will be CEO of the combined company, said: “Agility’s backing gives us the resources to provide innovative solutions for growing and forward-thinking customers, expanded product offerings, 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 boards of Agility and Menzies reached agreement on 30 March on Agility’s cash offer to acquire 100% of Menzies’ ordinary shares for 608 pence a share, valuing Menzies at approximately £571 million on a fully diluted basis and approximately £763 million on an enterprise value basis.
Tarek Sultan, vice chairman of Agility – which sold its Global Integrated Logistics business to DSV in 2019 – said: “This is a new chapter for Agility, Menzies, and NAS. By acquiring Menzies and combining it with NAS, Agility has the opportunity to unlock greater value in both. 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. For Agility, this deal creates the largest owned and operated – “controlled” – business in Agility’s portfolio by revenue, headcount, and global presence.”