Global airline services and logistics supplier John Menzies is to buy aircraft refuelling company Asig for $202million from BBA Aviation.
John Menzies expects the purchase to be ‘materially earnings enhancing for Menzies in the first full year’. It said that return on invested capital is expected to exceed weighted average cost of capital next year.
“This is a transformational deal for Menzies and will significantly increase Menzies Aviation’s footprint globally while also adding fuelling to our operations,” said Dr Dermot Smurfit, chairman of Menzies.
“The transaction will create one of the largest aviation services businesses in the world, doubling the size of our north American operations, while strengthening Menzies Aviation’s service offering at major international gateways such as London Heathrow, San Francisco, Denver and Los Angeles.”