Menzies snaps up Airbase

By PETER RANSCOMBE
Published on 02/08/2012 19:45

JOHN Menzies, the Edinburgh-based distribution and aviation services group, snapped up ground handling firm Flight Support in a deal worth up to £5.25 million.

Menzies will pay current owner Airbase Holdings £4.75m upfront and a further £500,000 over the next two years.

Menzies said: “The acquisition adds three airports to the ground handling network – ­Aberdeen, Guernsey and the Isle of Man – and further strengthens the division’s position in Manchester.”

The deal will bring the group into contact with new customers Blue Island and CityJet and will expand its work with existing clients including Aer Arran, EasyJet, Flybe and Loganair.

It added: “The acquisition – after allowing for start-up costs – will be earnings-neutral in the current year, but is expected to be earnings-enhancing in 2013.”

Karl Burns, an analyst at Shore Capital, said: “We retain our ‘buy’ recommendation on John Menzies, highlighting the undemanding valuation and strong growth prospects in aviation.”

The news comes a fortnight after Menzies revealed plans to close its cargo operations at four airports, including Glasgow.