John Menzies has been pursued by NAS, a subsidiary of the Kuwaiti aviation services provider, Agility Public Warehousing Company, since the start of 2022. The firm’s board originally rejected NAS’s initial offers at 460p a share and 510p share, however, the board had been in talks with NAS for a higher 608p a share for weeks.

The board has now agreed to the 608p-a-share offer, which is an 81% increase to the Menzies share price when NAS’s interest was first made public in February.

NAS has secured 1 19% stake and believes that there is an opportunity to combine the two firms. The combination will have operations in 57 countries and more than 250 airports. The combined revenues of Menzies and NAS were in excess of $1.5 billion in 2021.

According to NAS, the combined group is expected to be the largest airport services company in the world by the number of countries it operates in, second largest in terms of airports served, and third largest in terms of revenue. The group will have approximately 35,000 employees with a presence at more than 250 airports in 57 countries, handling more than 600,000 aircraft turns per year.

Hassan El-Houry, chief executive of National Aviation Services, said: “This deal creates a world leader in airport services and unlocks value for all stakeholders. The NAS-Menzies combination brings together highly complementary operations and ensures that the combined business has the scale and resources to grow. Menzies shareholders will realize a premium in return for supporting the transaction.

“Customers will benefit from Menzies’ operational excellence at more airports around the world and will be able to choose from a broader product offering. Employees of both companies will benefit from being part of a larger, stronger group that offers more career development and advancement opportunities. The combined business will have the capital to invest in the talent, technology, innovation, infrastructure, equipment, and sustainability leadership required to accelerate growth.”

Philipp Joeinig, chairman and chief executive of John Menzies, added: “The Menzies Directors believe that the offer represents a fair and recommendable price for shareholders which recognises Menzies’ future prospects.

“Menzies is an outstanding business with a long and rich history. The Board of Menzies applauds the work that the Menzies management team have done to steer the business through the challenging impacts of the pandemic and position the business for continued future growth and the next evolution in its journey.

“The Menzies all-cash offer from Bidco represents an opportunity for current shareholders to realise value for their investment at an attractive premium and valuation multiple.”