Menzies deal makes a world of difference

Kuwait’s Agility Public Warehousing Company is to acquire John Menzies, whose Menzies Aviation subsidiary is a major player in the ground handling, fuelling and cargo businesses.

Agility is a global supply chain services, infrastructure and innovation company, and Menzies will be combined with Agility subsidiary National Aviation Services (NAS). NAS is one of the fastest-growing regional aviation services providers, operating at more than 55 airports across the Middle East, Africa and South Asia.

The larger Menzies Aviation, meanwhile, operates at more than 200 airports in 37 countries, with a 25,000-strong workforce. In 2020, it handled 500,000 aircraft turnrounds, 1.2 million tonnes of cargo and fuelled 1.9 million aircraft.

The new combined company is expected to be the largest airport services company in the world by the number of countries it operates in, second largest in terms of airports served, and third largest in terms of revenue. 

The combined revenues of Menzies and NAS exceeded $1.5 billion in 2021. The combined group is expected to have around 35,000 employees with a presence at more than 250 airports in 57 countries, handling more than 600,000 aircraft turnrounds per year. 

“The NAS-Menzies combination brings together highly complementary operations and ensures that the combined business has the scale and resources to grow,” said Hassan El-Houry, NAS chief executive. “Employees of both companies will benefit from being part of a larger, stronger group that offers more career development and advancement opportunities.” 

“Menzies is a good fit,” added Agility’s vice-chairman, Tarek Sultan. “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.”

The combined group will unite NAS’s operations in fast-growing emerging markets across the Middle East and Africa, with the strong presence of Menzies in Europe, North America and Oceania. It will likely use the globally-recognized Menzies and Menzies Aviation brands following completion of the acquisition. 

NAS/Agility intends to retain a corporate hub and significant head office functions in Edinburgh, where the company was founded in 1833, with a new head office in London.