LONDON, UK: GIL International Holdings V Limited, a wholly-owned subsidiary of Agility Public Warehousing Company, has made a recommended cash offer to acquire Menzies plc at the rate of 608 pence in cash per Menzies share.
The acquisition values the entire issued and to be issued ordinary share capital of Menzies at approximately £571 million on a fully diluted basis and values Menzies at approximately £763 million on an enterprise value basis.
Commenting on the Acquisition, Hassan El-Houry, Group Chief Executive Officer of NAS, said: “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.
Menzies shareholders will realize a premium in return for supporting the transaction. 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.”
Commenting on the Acquisition, Philipp Joeinig, Chairman and Chief Executive Officer of Menzies, said: “The Menzies Directors believe that the offer represents a fair and recommendable price for shareholders which recognises Menzies’ future prospects.
Menzies is an outstanding business with a long and rich history. The Board of Menzies applauds the work that the Menzies management team have done to steer the business through the challenging impacts of the pandemic and position the business for continued future growth and the next evolution in its journey.
The Menzies all-cash offer from Bidco represents an opportunity for current shareholders to realise value for their investment at an attractive premium and valuation multiple.”
Commenting on the Acquisition, Tarek Sultan, Vice-Chairman of Agility, 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.
Menzies is a good fit. The aviation sector has strong growth potential, and Menzies is one of the most-established providers in the industry, with a sustainability focus we share. 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.”
Following completion of the Acquisition, Agility will create the Combined Group by combining Menzies’ business with that of its existing wholly-owned subsidiary, National Aviation Services (NAS).
Menzies is a critical partner to the global aviation industry, delivering time-critical logistics services at more than 200 locations in more than 37 countries, across six continents, through a global team of more than 25,000 highly trained people. Menzies Aviation is firmly established as a global player in cargo, fuelling and ground handling with strong competitive positioning within each of its core focus areas and an excellent reputation in the market.
NAS is an established and trusted aviation services provider in the emerging markets, with customers including many of the world’s leading airlines such as British Airways, Air France, KLM, Emirates and Qatar Airways. It is also one of the industry’s fastest growing regional aviation services providers, with a presence in more than 55 airports across the Middle East, Africa and South Asia.
NAS is part of the Agility group, a global supply chain services, infrastructure and innovation company listed on the Kuwait Stock Exchange and the Dubai Financial Market. Agility has a proven track record of investing in and successfully scaling businesses sustainably and responsibly, both organically and through acquisitions.