Complementary Acquisition to Expand
WFS’s Presence in U.S. Cargo Handling Market
LOS ANGELES (Jan. 11, 2016) – Worldwide Flight Services (WFS), one of the
world’s leading cargo handlers and providers of ground handling and technical
services, announced today an agreement to acquire Consolidated Aviation
Services (CAS). Financial terms were not disclosed. The transaction is subject
to regulatory approval and other customary closing conditions.
CAS, headquartered in New York, is one of the leading cargo handlers in
the United States, serving over 250 airline customers. WFS, which was acquired
by Platinum Equity in September 2015, is present at major airports in more than
22 countries on five continents. WFS serves 300 airlines globally, including
the handling of four million tons of cargo and 50 million airline passengers
per annum.
Olivier Bijaoui, Executive Chairman, President and CEO of WFS, said: “The proposed acquisition will not only create a unique organization in
the United States that combines the best of both companies, but will also position
WFS as one of the world’s premier cargo handlers. I know Mike Duffy and the CAS team well, have
worked with many of them before, and have a great deal of respect for what they
have accomplished. CAS’s success is a testament
to the hard work of its employees, and the combination will create one of the most
knowledgeable and experienced teams in this industry.”
Bastian Lueken, head of Platinum Equity’s European investment team, said:
“We are delivering on our pledge to support WFS's profitable growth by pursuing
complementary, accretive add-on acquisitions which present immediate synergies.
On a pro forma basis the proposed transaction should substantially diversify
WFS’s revenues and cash flow and lead to a reduction in the company’s senior
secured leverage.”
Mr.
Lueken said the de-levering would result from a combination of additional
EBITDA contributed by CAS, new secured and unsecured notes, and a substantial
new equity commitment to help fund the proposed acquisition.
Michael Duffy, President & CEO of CAS, said:
"We are very excited to partner with a premier service provider such as WFS. Our current capital partner ICV has truly
supported our tremendous growth, and we believe working with Olivier and his
professional team, supported by the fantastic team of Platinum Equity, will
certainly elevate our service culture and standards to the optimum levels. We are confident we will not only enhance our
stance in the Americas but hope to share in best practices on a global basis.”
About
Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com) is a global investment firm with more than $6
billion of assets under management and a portfolio of approximately 30
operating companies that serve customers around the world. Platinum Equity specializes
in mergers, acquisitions and operations – a trademarked strategy it calls
M&A&O® – acquiring and operating companies in a broad range
of business markets, including manufacturing, distribution, transportation and
logistics, equipment rental, metals services, media and entertainment,
technology, telecommunications and other industries. Over the past 20 years
Platinum Equity has completed more than 175 acquisitions.
