Agility has finalized its acquisition of UK-based Menzies Aviation and will combine the business with its National Aviation Services (NAS) business.
Once integrated, the combined company will operate as Menzies Aviation to provide air cargo services, fuel services and ground services at airports on six continents. Menzies Aviation CEO Philipp Joeinig will be CEO of the combined company.
Combined revenues of Menzies and NAS exceeded US$1.5 billion in 2021. The new company will have approximately 35,000 employees and operations at 254 airports in 58 countries, handling 600,000 aircraft turns, two million tonnes of air cargo and 2.5 million fuelling turns per year.
“Menzies and NAS will create the world leader in aviation services,” said Hassan El-Houry, who becomes chair of the combined 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.”
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.
“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,” Joeinig said. “It also means we are well-positioned to support our customers in tackling supply chain challenges and labour shortages.”
Agility picked up Menzies to further its growth strategy, said vice-chairman Tarek Sultan. “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.”
The boards of Agility and Menzies reached agreement March 30 on Agility’s cash offer to acquire 100 percent 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.