SATS to acquire Worldwide Flight Services for $1.64b

The acquisition will be immediately financially accretive on a pro forma basis.

Airport service company SATS Ltd. announced plans to acquire the world’s largest air cargo handling firm, Worldwide Flight Services (WFS), for a cash consideration of $1.639b or €1.187b.

SATS said the acquisition will advance its “twin growth engine strategy” to expand its network and capabilities in Asia and globally whilst continuing to strengthen its Singapore core.

The acquisition will be immediately financially accretive on a pro forma basis, raising earnings per share by 78% from $0.018 to $0.032.

Since WFS has an enterprise value (EV) of $3.107b (€2.250b), SATS said the transaction will also imply an EV/EBITDA multiple of 9.7x.

“This is a transformational opportunity for SATS and our proposed acquisition of WFS will create a global leader that can become the go-to provider of mission-critical aviation services. From our hub in Singapore, and in our newly combined markets, SATS and WFS will be at the heart of global trade flows, operating in the world’s busiest airports and supporting the biggest companies,” Kerry Mok, president and CEO of SATS, said.