John Menzies agrees to buy plane refuelling firm Asig

John Menzies has agreed a deal to buy plane refuelling business Asig in a deal worth almost £153m.

The Edinburgh-based company said it would strengthen Menzies Aviation's offering at major international gateways such as London Heathrow, San Francisco, Denver and Los Angeles.

The company said buying Asig for ($202m) was a "strategically and financially compelling transaction".

Asig has operations in 88 locations across seven countries.

It is one of the largest independent providers of commercial airline services in the world.

With its headquarters in Orlando, but currently owned by BBA Aviation in the UK, it is one of the market leaders for into plane (ITP) fuelling and fuel farm management (FFM) services in North America and the UK.

It also has ground handling operations.

'Transformational deal'

John Menzies said the deal would strengthen its position as a leading player in the global aviation services market.

Menzies chairman Dr Dermot Smurfit said: "This is a transformational deal for Menzies and will significantly increase Menzies Aviation's footprint globally while also adding fuelling to our operations.

"The transaction will create one of the largest aviation services businesses in the world, doubling the size of our North American operations, while strengthening Menzies Aviation's service offering at major international gateways such as London Heathrow, San Francisco, Denver and Los Angeles.

"The board is confident of realising significant cost synergies following the acquisition and it is expected to deliver material enhancement in underlying earnings per share in its first full financial year of ownership."

The takeover is expected to be completed for completion by the end of 2016.