Agility acquires Menzies Aviation for £763m

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Supply chain services and infrastructure company Agility has finalized its £763m (US$923.9m) acquisition of UK-based John Menzies and will combine the business with its National Aviation Services (NAS) subsidiary.

Operating as Menzies Aviation, the combined company will provide air cargo services, fuel services and ground services at airports on six continents. According to Agility, the combined company will be the world’s largest aviation services company by the number of countries and the second largest by the number of airports served. The new company will have approximately 35,000 employees and operations at 254 airports in 58 countries, handling 600,000 aircraft turns, two million tons of air cargo and 2.5 million fueling turns per year.

The boards of Agility and Menzies reached an agreement on March 30 on Agility’s cash offer to acquire 100% of Menzies’ ordinary shares, which traded on the London Stock Exchange, for 608p (US$0.74) a share. The deal values Menzies at approximately £571m (US691.3m) on a fully diluted basis and approximately £763m (US$923.9m) on an enterprise value basis.

Hassan El-Houry will become chairman of the combined company, having previously been CEO of NAS. El-Houry said, “Menzies and NAS will create the world leader in aviation services. 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.” 

Philipp Joeinig, CEO of Menzies Aviation and soon-to-be CEO of the combined company, said, “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. 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.”

Tarek Sultan, vice chairman of Agility, 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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