Singapore’s SATS to become No #1 global air cargo handler with purchase of Worldwide Flight Services

©Worldwide Flight Services (WFS) to be acquired by SATS

Singapore Airport Terminal Services (SATS) has announced it has agreed to purchase Worldwide Flight Services (WFS) for US$ 1.14 billion in cash from an affiliate of U.S. private equity firm Cerberus Capital Management.

SATS will raise US$797 million in equity to fund the purchase and the deal will transform SATS into the largest global air cargo handler with a current market value of US$3 billion. Its principal shareholder is Tamask Holdings, as Singapore state investor, which has provided an irrevocable undertaking to vote in favour of the transaction. The two combined entities will create a company with the immediate capability of covering trade routes responsible for 50% of global air cargo volume.

Founded in 1984, WFS is the world’s largest air cargo logistics provider and a major provider of ground handling and technical services. It has more than 300 customers and employs 32,300 staff, the company said. SATS said it had committed funding in place to finance the purchase of WFS through an acquisition bridge facility. The base funding plan comprises internal cash and an equity fundraising from existing shareholders and new strategic investors. The deal is expected to be completed by March 2023. (£1.00 = US$1.11 at time of publication).

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