WORLDWIDE Flight Services Holland (WFS), an air cargo handler at Netherlands’ main international airport, is proposing to acquire Menzies World Cargo (Amsterdam), which is the general cargo handler at that same airport.
Menzies World Cargo (Amsterdam) is currently the cargo handling arm of Menzies Aviation.
The proposed acquisition will increase the warehouse capacity and cargo handling capabilities for Worldwide Flight Services Holland in one of Europe’s busiest air cargo locations, according to a media release from ground handler and inflight caterer Sats, which is the parent company of the air cargo handler.
The additional warehouse will provide more capacity for Worldwide Flight Services Holland, which will enable it to capitalise on its strong local customer relations and service levels, and position itself for growth over the long term, added Sats in the release on Friday (Aug 30).
Worldwide Flight Services Holland, which has been operating in Amsterdam’s Schiphol airport since 2000, is now operating close to maximum capacity, said John Batten, the company’s chief executive officer of Europe, Middle East, Africa, and Asia.
“Worldwide Flight Services Holland operates in Europe’s five largest airports by cargo volume and we are excited to see Worldwide Flight Services Holland enlarge its footprint at a time of strong demand for its services,” he said.
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Batten added that the business pipeline will soon fill the newly acquired capacity and take the air cargo handler to the next stage of its growth.
WFS and Menzies Aviation have entered into a signing protocol and the proposed deal is pending a few conditions to be fulfilled before it is completed. Some of these include having the works council – a body that represents employees at the companies – provide advice on the proposed acquisition, and Menzies Aviation delivering the lease agreement of its warehouses to WFS.
The proposed deal involves Sats acquiring a loss-making asset.
Under the terms of the sales and purchase agreement, WFS shall acquire the sale shares for a nominal sum of one euro (S$1.46), which would be paid fully in cash.
The transaction price was arrived at on a negotiated arm’s length basis and determined after taking into account the pre-completion undertakings. These include a cash contribution of about 6.25 million euros paid by Menzies Aviation to Menzies World Cargo Amsterdam.
Shares of Sats fell 0.3 per cent or S$0.01 to close at S$3.65 on Friday.
