The deal needs to be approved by Menzies shareholders, who will be entitled to 608 pence per share, a deal the board recommends they accept.
If they accept, Menzies will be combined with National Aviation Services (NAS) to create the largest airport services company in the world with 35,000 employees at more than 250 airports in 57 countries.
Combining the companies will bring the benefits of more capital for investments, more diverse products for customers in both the aviation services and air cargo sectors, and a stronger company to serve the needs of customers, the companies say.
Hassan El-Houry, CEO of NAS said: “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 realise 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.”
The combined company will be owned by Agility and maintain the Menzies and Menzies Aviation brands.
The acquisition is expected to be completed in the third quarter of this year with Menzies and NAS being combined and managed by a team with representatives from both companies.
The Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of Menzies keep their roles in the combined group and the CEO of NAS will take the role of Chair of the group.
Menzies’ head office will remain in Edinburgh and the combined group will open its headquarters in London where certain senior management and some head office functions will be located.
