SATS completes WFS acquisition
The acquisition got 96.8% approval from SATS' voting shareholders in January 2023, and regulatory approvals in all relevant jurisdictions were acquired in February.
SATS Ltd. announced the completion of its previously announced acquisition of global air cargo logistics provider Worldwide Flight Services (WFS) for €1.3 billion (approximately S$1.8 billion) from an affiliate of Cerberus Capital Management, representing an enterprise value of €2,250 million.
The acquisition got 96.8% approval from SATS' voting shareholders in January of this year, and regulatory approvals in all relevant jurisdictions were acquired in February. With the conclusion of the transaction, WFS becomes a wholly owned subsidiary of SATS, which is based in Singapore.
WFS will remain headquartered in Paris and will trade as Global Flight Services. Craig Smyth, CEO of WFS, will continue to lead the firm and report to Kerry Mok, President & CEO of SATS, and an advisory board.
Mok said, “Recent global events have highlighted the importance of supply chain resiliency and an interconnected global network of cargo handling capabilities that provides speed, traceability, and certainty to our customers. SATS and WFS will provide our customers with the critical global cargo handling capability, and the scale advantage for us to develop and pioneer new solutions that will enhance our customers’ competitiveness. We welcome the management team and employees of WFS into the SATS family. Our focus is now on accelerating value creation for our customers over the medium term.”
Both SATS and WFS have a long history and deep knowledge of the aviation industry. SATS is a leading provider of food solutions and gateway services in Asia, while WFS is a leading air cargo logistics provider globally with ground handling capabilities.
Smyth added, “Our combination with SATS enhances our ability to provide end-to-end trade solutions, which is increasingly critical to our global customers. Together, we will drive technology and service innovations while maintaining our industry-leading standards of safety and security. We are very excited about the value we can deliver for customers from our combined capabilities and broader network.”
As a combined company, SATS and WFS create an Americas-Europe-APAC network with a global footprint of 201 cargo and ground handling stations in 23 countries, covering trade routes responsible for more than 50% of global air cargo volume.
The combined group operates in five of the top 10 cargo airports in North America and Europe respectively, including Los Angeles, Chicago, Miami, Frankfurt, and Paris, and four of the top 10 cargo airports in Asia, including Hong Kong, Taipei, Singapore, and Beijing.
Cerberus Senior Managing Director Craig Brooks commented, “We are incredibly proud to have partnered with WFS and its talented team. Over the past four and half years, WFS invested in its technology and operations, achieved tremendous growth, and persevered through the COVID-19 pandemic. This strategic combination with SATS will support the company’s continued success and deliver great value for its customers.”