Agility of Kuwait signs new $1.42 billion credit facility to fund John Menzies takeover

Kuwait-based Agility, one of the largest logistics companies in the Mena region, has signed a new €1.4 billion ($1.42 billion) credit facility to finance the acquisition of the company British John Menzies and other growth plans.

The company also plans to sign two replacement facilities in the coming week and add an additional 400 million euros of facilities to replace an existing short-term loan, it said in a filing to Boursa Kuwait on Sunday. .

“These will be used to fund the company’s growth plans, including long-term financing for the acquisition of John Menzies Plc,” Agility said, without identifying the banks.

The latest deal is part of a funding round that has increased Agility’s credit lines with existing and new local, regional and international banks to $3.2 billion from $1.4 billion, a- he declared. The lines of credit have maturities of three, five and six years.

On August 4, Agility finalized its £763 million ($921.5 million) acquisition of UK-based aviation company John Menzies in a deal that creates the world’s largest aviation services provider.

The boards of Agility and John Menzies reached agreement on March 30 on Agility’s cash offer to acquire 100% of the UK-based company’s ordinary shares.

The deal values ​​John Menzies at around £571m on a fully diluted basis and around £763m on an enterprise value basis, the companies said in a joint statement at the time.

Agility will merge its subsidiary, National Aviation Services, with John Menzies, creating the world’s largest aviation services company by number of countries and second by number of airports served, he said.

Menzies Aviation, the combined company, will provide air cargo services, fuel services and ground services at airports around the world.

The new company will have approximately 35,000 employees and operate at 254 airports in 58 countries, handling 600,000 aircraft rotations, 2 million tonnes of air cargo and 2.5 million refueling rotations per year.

Menzies Aviation customers will include the United Arab Emirates and flydubai, Air Canada, Air China, Air France-KLM and American Airlines.

“We will have the scale and the resources to grow and grow as the industry recovers from the Covid-19 pandemic,” NAS chief executive Hassan El Houry, who will become president of Menzies Aviation.

“Commercial aviation is a key driver of global economic growth, and our customers need partners they can rely on as flight volumes return.”

Global air cargo demand in the first half of 2022 was 2.2% above pre-Covid levels in the first six months of 2019, but 4.3% below 2021 levels, according to data from the International Air Transport Association.

“It’s a solid performance, especially given the ongoing supply chain constraints and the loss of capacity due to the war in Ukraine,” Iata chief executive Willie Walsh said last week.

“The current economic uncertainties have had little impact on air freight demand, but developments will need to be closely monitored in the second half of the year.”

Updated: August 07, 2022, 10:02 a.m.

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