Sats to snap up WFS in €1.2bn deal

Singapore’s Sats has agreed to buy French rival Worldwide Flight Services in a €1.2bn deal, it was confirmed on Wednesday.

Sats, which provides catering and ground handling services at Changi Airport, is acquiring Paris-based WFS from Cerberus Capital Management, the US investment firm.

The Singapore-listed company said the cash deal would create the world’s largest air cargo handling group.

Kerry Mok, chief executive, added that the combined company would be the "go-to provider" for mission-critical aviation services.

"This is a transformational opportunity for Sats," he said. "From our hub in Singapore, and in our new 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."

WFS operates in a number of leading cargo airports in the US and Europe, including Los Angeles, Chicago, Frankfurt and Paris, while Sats is present in Hong Kong, Taipei and Beijing, as well as Singapore.

Craig Smyth, WFS chief executive, said: "This combination will deliver exciting benefits for our customers and our people."

The aviation sector was one of the hardest hit by the pandemic. But demand has surged this year, as international restrictions were dropped.