KUWAIT: Agility, a Kuwait-based provider of supply chain services, infrastructure and innovation, has announced the completion of its acquisition of UK-based John Menzies.
Agility will merge the business with its National Aviation Services to form a world leader in aviation services with operations in 58 countries.
According to Agility, once integrated, the combined company will operate as Menzies Aviation and will be the world’s largest aviation services company in terms of countries served and second largest in terms of airports served.
Menzies Aviation will provide air cargo, fuel and ground services at airports across six continents.
Menzies and NAS combined revenues exceeded $1.5 billion in 2021, according to Agility.
The new company will employ about 35,000 people and will operate from 254 airports in 58 countries, handling 600,000 aircraft turns, 2 million tons of air cargo and 2.5 million fueling turns a year.
“Menzies and NAS will create the world leader in aviation services,” said Menzies Aviation Chairman Hassan El-Houry.
“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,” El-Houry said.
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.
“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.
“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,” Joeinig 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,” said Agility Vice Chairman Tarek Sultan.
Sultan said: “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.”
On March 30, the boards of Agility and Menzies agreed to Agility’s cash offer to acquire all of Menzies’ ordinary shares, which traded on the London Stock Exchange, for 608 pence a share.
In the deal, Menzies is valued at £571 million (nearly $694 million) on a fully diluted basis and £763 million on an enterprise value basis.