Worldwide Flight Services says it will accelerate its growth through opportunities and acquisitions under the ownership of the global investment firm.
Global investment firm Platinum Equity has agreed to purchase Worldwide Flight Services, the world’s largest air cargo handler, from LBO France, which has owned the company since 2006. The proposed transaction is expected to close by the end of June 2015, subject to customary regulatory approvals. Financial terms of the deal were not disclosed.
According to a statement from WFS, Platinum Equity is working with the company and its leadership team on a plan to ensure a smooth transition once the transaction closes, while developing initiatives to support the company’s long-term growth strategy.
A leading global provider of ground handling and technical services, WFS has operations at 140 airports in more than 22 countries on five continents and handles over four million tons of cargo each year. The company was formed in 1983 by American Airlines as AMR Services Corporation so that AA could outsource the ramp, passenger and terminal services that were separate from its core business. AA sold AMR Services Corporation to Castle Harlan in 1999, which renamed the company Worldwide Flight Services.
WFS now employs 12,000 staff worldwide, focusing its development on expanding geographical markets such as the Middle East, Asia and Africa and in complementary business sectors such as VIP services and cruise terminal management.
In the past two years, WFS has opened new cargo terminal facilities in Johannesburg and Cape Town, South Africa, expanded operations at London’s Heathrow airport, and acquired Swissport’s cargo business at Copenhagen Airport. Most recently, the company acquired a controlling stake in Orbital Group, a leading provider of ramp, passenger and airport security services in Brazil.
Platinum Equity, a global investment firm with more than $6 billion in assets under management, manages a portfolio of more than 30 operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm’s portfolio companies reported combined revenues of over $17 billion in fiscal year 2014.
It has previous experience in transportation, logistics and distribution services, having held companies like supply chain solutions provider Active Aero Group and value-added logistics services provider Neovia Logistics.
WFS said the company plans to “accelerate its growth by exploring more business opportunities and implementing its acquisition strategy under the new ownership of Platinum Equity.” Platinum Equity considers itself a specialist in mergers, acquisitions and operations, a trademarked strategy it calls “M&A&O,” having completed more than 150 acquisitions in the past 20 years.
“We view our future collaboration with Platinum Equity as a unique opportunity to grow our business and explore new opportunities, leveraging on our solid foundations and second-to-none experience,” Olivier Bijaoui, WFS president and CEO, said of the acquisition. “Their financial strength and M&A expertise will be of great support in our acquisition strategy and help the management to write a new and successful page of WFS history.”
WFS purchased by Platinum Equity
