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.