Kuwait’s Agility has finalised its £763 million ($921.7 million) acquisition of UK-based John Menzies in a deal that creates the world’s largest aviation services provider by number of airports served.
Agility will combine the company with its subsidiary, National Aviation Services (NAS). The new entity will operate as Menzies Aviation with presence in 58 countries.
A statement released by the companies on Thursday said their combined revenue exceeded $1.5 billion in 2021, and going forward, they will employ 35,000 people and operate at 254 airports, handling 600,000 aircraft turns, 2 million tonnes of cargo and 2.5 million fuelling turns per year.
Agility’s regional rival, Dubai-based dnata, which is part of Emirates Group, provides ground handling services at 86 airports according to its website.
Hassan El-Houry, who will assume the role of chairman of the newly combined companies, having previously been NAS CEO, said they 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 boards of Agility and Menzies agreed on March 30 on Agility’s cash offer to acquire 100% of Menzies' ordinary shares, which traded on the London Stock Exchange for 608 pence a share.
The deal values Menzies at approximately £571 million on a fully diluted basis and approximately £763 million on an enterprise value basis, the company said.
Agility told Boursa Kuwait on Wednesday that Menzies' shares on the London Stock Exchange will be cancelled as of Friday morning at 7am UK time.
John Menzies, founded in 1833, is the holding company of Menzies Aviation which is headquartered in the Scottish city of Edinburgh. John Menzies’ company started as a bookseller based at railway stations, then incorporated warehousing, before it focused on aviation services with the acquisition of Scan International and Cargosave in 1987.
(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)