Kuwaiti supply chain giant completes £763m acquisition of 189-year-old Scottish firm

·2-min read

GLOBAL supply chain giant Agility has announced that it has finalised the £763 million acquisition of Edinburgh-based John Menzies.

The Kuwait-based logistics company said Menzies will combine with its Gulf-headquartered National Aviation Services to create “the world’s largest aviation services company by number of countries".

The new company will operate as Menzies Aviation and provide air cargo services, fuel and ground services.

It will have 35,000 employees and operations at 254 airports in 58 countries, handling 600,000 aircraft turns and two million tonnes of air cargo.

On its own, Menzies had 27,000 staff handling cargo, planes and fuel at 200 airports in 37 countries.

Combined revenues of Menzies and NAS exceeded $1.5 billion in 2021.

READ MORE: Menzies engages with shareholders amid buyout bid

“Menzies and NAS will create the world leader in aviation services,” said Hassan El-Houry, who becomes chairman of the combined company, having previously held the role of NAS chief executive. “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.”

Philipp Joeinig, Menzies Aviation chief executive, will retain the same title in the combined company.

He said: “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.

“It also means we are well-positioned to support our customers in tackling supply chain challenges and labour shortages.”

Founded as a bookshop in 1833, John Menzies later became a news distributor and a series of acquisitions put it into the airport services sector in the 1980s.

It sold its distribution arm in 2018.