Kuwait-based global logistics company, Agility will fully acquire UK-based John Menzies for $751 million in order to create an airport services giant amid a steady recovery in air travel from the COVID-19 pandemic.
According to the statement, once the merger is approved by the two businesses’ shareholders, Menzies will be merged with National Aviation Services (NAS), a unit of Agility.
The boards of the two companies reached an agreement on the terms of the deal, including a cash offer to acquire 100 percent of the ordinary shares in Menzies at a price 608 pence a share, the company 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 that focuses on companies in high-growth sectors with strong fundamentals, reinforced by management teams with established records, best-practices governance, and alignment with Agility’s vision and values. 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.”
Commenting on the Acquisition, Mr. Hassan El-Houry, Group Chief Executive Officer of NAS commented that, “This deal creates a world leader in airport services and unlocks value for all stakeholders. The NAS-Menzies combination brings together highly complementary operations and ensures that the combined business has the scale and resources to grow.”
“Customers will benefit from Menzies’ operational excellence at more airports around the world and will be able to choose from a broader product offering. Employees of both companies will benefit from being part of a larger, stronger group that offers more career development and advancement opportunities. The combined business will have the capital to invest in the talent, technology, innovation, infrastructure, equipment, and sustainability leadership required to accelerate growth,” Mr. El-Houry added.
“The Menzies Directors believe that the offer represents a fair and recommendable price for shareholders which recognizes Menzies’ future prospects,” noted Mr. Philipp Joeinig, Chairman and Chief Executive Officer of Menzies.