Dar es Salaam. The boards of the two giant ground handling companies in the world have reached an acquisition agreement to strengthen their feet, The Citizen has learnt.
Agility Public Warehousing Company and John Menzies PLC a few days ago reached an agreement on the terms of a recommended cash offer to acquire 100 percent of the ordinary shares in Menzies, according to the document seen by this paper.
While Agility, a parent company of the National Services Aviation (Nas), is a logistics services provider headquartered in Kuwait, Menzies is the holding company of Menzies Aviation based in the United Kingdom.
The £571 million deal on a fully diluted basis and £763 million on an enterprise value basis, is set to be closed in September 2022.
If approved by Menzies’ shareholders and regulatory authorities, the deal will create an industry powerhouse in aviation services.
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 combined revenues of Menzies, which operates in all five continents, mainly Europe, America, Asia and Oceania, and Nas, which operates in Africa, Asia and Middle East, were in excess of $1.5 billion in 2021.
The combined group is expected to have approximately 35,000 employees with a presence at more than 250 airports in 57 countries, handling more than 600,000 aircraft turns per year.
Nas Chief Executive Hassan El-Houry said the deal will create a world leader in airport services and unlocks value for all stakeholders.
“Nas-Menzies combination brings together highly complementary operations and ensures that the combined business has the scale and resources to grow,” he asserted.
Mr El-Houry said customers will benefit from Menzies’ operational excellence at more airports around the world and will be able to choose from a broader product offering.
“The combined business will have the capital to invest in the talent, technology, innovation, infrastructure, equipment, and sustainability leadership required to accelerate growth,” he said.
John Menzies Chairman and Chief Executive Philipp Joeinig said: “the Menzies directors believe that the offer represents a fair and recommendable price for shareholders which recognises Menzies’ future prospects.”
Agility Vice-Chairman Tarek Sultan said a Nas-Menzies combination will create a strong and resilient industry player, well positioned to grow and drive future earnings.
“We expect this acquisition to further diversify Agility’s revenue base and strengthen cash flow generation,” he exuded his optimism.
He said agility’s focus is on growth and shareholder value creation.
“We are a long-term, multi-business operator and investor aiming to create value with a disciplined investment strategy,” he noted.
“Menzies is a good fit. The aviation sector has strong growth potential, and Menzies is one of the most-established providers in the industry, with a sustainability focus we share."
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