Ground Services

EXCLUSIVE: Menzies to buy new businesses in next nine months

EXCLUSIVE: Menzies to buy new businesses in next nine months
The company is focusing its attention towards locations with "emerging markets" (Image credit: Menzies Aviation)

Menzies Aviation expects to complete “four or five” acquisitions in the next nine months, ARGS can exclusively reveal.

CEO Philipp Joeinig has confirmed that Menzies Aviation intends to buy a number of new businesses as part of the company’s global expansion plans.

“Our strategic goal is to be the undisputed number one in our industry,” he told ARGS this week. “That means being the service provider of choice by having the best health and safety track record, the highest growth rate in the sector and the largest footprint in terms of the number of stations and countries we operate in.”

“In the last two years, from 2022 to 2024, around one third of our growth has come from acquisitions – so they form an integral part of our strategy,” Joeinig added. “This has been and will always be the case.

“At the moment we are working on four or five very exciting things and are confident we will close these within the next nine months.”

Speaking on the company’s expansion strategy for 2025, Joeinig said there are around 500 airports where Menzies can “see value”.

The company currently has around 300 stations at airports globally, but will continue to seek growth opportunities in “emerging markets” – which includes Southeast Asia, South America, the Middle East, Africa and Eastern and Southern Europe.

Joeinig added: “There are a lot more opportunities for growth out there – and if we can’t penetrate the market through organic growth, we will seek new opportunities through acquisitions.”

The service provider’s footprint has expanded significantly in the last few years.

In 2019, Menzies served 170 locations. Joeinig is confident the company will reach the milestone of 300 stations by the end of 2024.

The CEO estimates that, by the end of next year, the company’s footprint could rise to as many as 350 locations globally.

He said: “Our aspiration is to cross the 3 billion mark by 2025. That is our next target. That means 20 per cent growth for the rest of this year and also next.

“This would be the highest growth rate this industry has ever seen by any international player, and is in reach for 2024.

“We also have [projects in the] pipeline that give us the confidence to achieve our 2025 target.

“We can increase our global presence through organic growth, winning tenders – and therefore licenses – or acquisitions. These are the three pillars of our global expansion strategy.”

Menzies acquired majority stakes in Jardine Aviation Services (now Menzies CNAC) in January and Groundforce Portugal in June this year, expanding its offering to commercial aviation customers in Europe and Hong Kong, respectively. The companies each account for 5 per cent of group revenue.

In May, the company bought Balkans-based Flystar Flight Support to create Pearl Executive Aviation, broadening its footprint to now provide ground services for private jets and airport lounges.

Quizzed on the strategy behind the new venture, Joeinig told ARGS that when Menzies merged with National Aviation Services (NAS) in 2022, the company inherited a large number of lounges and began to rebrand its own lounges to become what is now Pearl.

“We have selected markets in Eastern Europe, the Middle East, Africa and Latin America to start these services,” he said, adding that Menzies aims to become a “global player in private aviation services and handling”.

“With this acquisition, and those to come, we will grow to become number one in all four of our businesses,” said the CEO.

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