The boards of Agility and Menzies reached an agreement on Agility’s cash offer to acquire 100% of Menzies’s ordinary shares valued at approximately £571 million on a fully diluted basis.
Agility, supply chain services, infrastructure and innovation company, announced that the company has finalized the acquisition of UK-based John Menzies PLC. The boards of Agility and Menzies on March 30 2022 reached a positive conclusion on Agility’s cash offer to acquire 100% of Menzies’s ordinary shares, which traded on the London Stock Exchange, for 608 pence a share. Agility has made a decision to combine the business with its National Aviation Services (NAS) business.
“Menzies and NAS will create the world leader in aviation services,” said Hassan El-Houry, Chairman of the combined Agility and Menzies Company, having previously held the role of NAS CEO. “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.”
Agility has announced the decision to combine the business with its National Aviation Services (NAS) business with an aim to create a world leader in aviation services in 58 countries. The deal puts a value of approximately £571 million on Menzies on a fully diluted basis and approximately £763 million on an enterprise value basis. Once integrated, the combined company will operate as Menzies Aviation and will be the world’s largest aviation services company by the number of countries and the second largest by the number of airports served.
“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 CEO Philipp Joeinig, who will be CEO 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 labor shortages.” He added.
The merged Agility and Menzies Aviation operating as Menzies Aviation will provide air cargo services, fuel services and ground services at airports on six continents around the globe. The Combined revenues of Menzies and NAS exceeded $1.5 billion in 2021. The new Menzies Aviation company will have approximately 35,000 employees and operations at 254 airports in 58 countries. The company will be handling 600 thousand aircraft turns along with 2 million tonnes of air cargo and 2.5 million fuelling turns per year.
Agility Vice Chairman, Tarek Sultan 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. We’re looking forward to seeing the new Menzies soar with Agility’s backing.”
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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.
