Worldwide Flight Services (WFS) is to expand its cargo handling presence in the US by acquiring Consolidated Aviation Services (CAS) – as consolidation in the cargo handling market continues.
Financial terms have not been disclosed about the deal and the transaction is subject to regulatory approval and other customary closing conditions.
CAS, headquartered in New York, is one of the major cargo handlers in the US serving more than 250 airline customers.
WFS, which was acquired by Platinum Equity in September 2015, is present at over 145 major airports in more than 22 countries on five continents. WFS serves 300 airlines globally, including the handling of over four million tones of cargo per annum.
WFS executive chairman, president and chief executive officer (CEO), Olivier Bijaoui says: “The proposed acquisition will not only create a unique organization in the United States that combines the best of both companies, but will also reinforce WFS’ position as one of the world’s premier cargo handlers.
“I know Mike Duffy, president & CEO of CAS, and the CAS team well, have worked with many of them before, and have a great deal of respect for what they have accomplished. The success of CAS 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.”
Platinum Equity’s European investment team head, Bastian Lueken explains: “We are delivering on our pledge to support the profitable growth of WFS by pursuing complementary, accretive add-on acquisitions which present immediate synergies.”
In November 2015, WFS also completed its acquisition of a 51 per cent shareholding in Fraport Cargo Services, confirming its strategic partnership with Fraport AG for airfreight handling at Frankfurt Airport.