News / Menzies merger deal with Agility's NAS creates the world's biggest handler

Menzies

Menzies Aviation has become the world’s largest aviation services company, following the completion of its merger deal with Agility’s National Aviation Services (NAS).

Present in 58 countries, the new business will see combined revenue of $1.5bn, based on 2021 figures.

Handler NAS, a subsidiary of Agility Public Warehousing – the part of Agility not snapped-up by DSV last year – was initially rebuffed for an offer for 510p ($6.93) per share in February. It followed up its offer by opting for a hostile purchase of 13% of Menzies, at 605p.

Finally, at the end of March, Agility offered 608p per share, a deal that values Menzies at approximately £571m ($696m) on a fully diluted basis and approximately £763m on an enterprise value basis.

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

“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.”

Customers include Air Canada, Air China, Air France-KLM, American Airlines, British Airways, Cathay Pacific, EasyJet, Emirates, Ethiopian, FlyDubai, Frontier Airlines, IAG, Jazeera, Qantas, 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, who will become CEO of the combined company.

“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 labour shortages.”

Agility vice-chairman Tarek Sultan added: “This is a new chapter for Agility, Menzies and NAS. Agility has a strong track record of sustainable and responsible growth over the past two decades, driven both organically and through mergers and acquisitions, and this latest deal is part of our strategy to further accelerate that growth. We’re looking forward to seeing the new Menzies soar with Agility’s backing.”

The new company will have approximately 35,000 employees and operations at 254 airports, handling 600,000 aircraft turns, two million tonnes of air cargo and 2.5m fuelling turns a year.