Archer sells Australia's Aerocare to Swissport

The company claims to be the largest provider of outsourced flight support services in Australia and New Zealand, covering customer service, baggage and ramp handling, cleaning, and other ancillary services. It manages more than 160,000 flights and 15 million passengers every year.

The transaction includes Aerocare and its subsidiary companies, Skycare, Carbridge and EasyCart, which focus on premium and corporate services, airport bussing, and trolley management. It has already won approval from Australia’s Foreign Investment Review Board (FIRB).

Swissport said the acquisition would expand its global footprint to include the Australasian market, complementing an Asia push that has so far focused on China. The company was bought by China’s HNA Group from PAI Partners for CHF2.7 billion ($2.8 billion) in 2015.

Archer reportedly paid just over A$200 million ($152 million) for Aerocare. Over the past three years, the company claims to have increased the number of airports it services from 23 to 36, grown its employee base from 1,500 to 3,000 – with the proportion of permanent employees rising from 30% to 90% – and improved its safety record.

However, its safety and security record has been questioned, with accusations emerging earlier this year that staff were forced to sleep on makeshift beds beside luggage carousels between shifts. Aerocare denied the claims, saying they were part of a campaign instigated by the Transport Workers Union (TWU) during enterprise bargaining agreement negotiations.

Earlier this month, the Australian Civil Aviation Authority cleared the company of the safety and security breaches alleged by the TWU. Prior to this, First Super suspended its PE investment program over concerns about poor labor practices in portfolio companies, citing Aerocare as one of three high-risk businesses.

“This is an exciting time for Aerocare, as 2017 marks our 25th anniversary. We’ve grown from a small regional business to become the Australasian champion, and have now secured our future as an important part of the unquestioned global leader,” said Glenn Rutherford, CEO of Aerocare, in a statement. “Over the last four years alone we have significantly invested in improved systems, people and training.”

Swissport provides ground services for more than 230 million passengers and handles 4.3 million metric tons of cargo a year on behalf of some 835 clients. It has 280 stations in 48 countries, with a workforce of over 62,000 and annual consolidated operating revenue of EUR2.7 billion ($3.2 billion).

Archer focuses on leveraged buyout opportunities in Australia and New Zealand, with a preference for equity checks of A$75 million and above.

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• Topics
• Australasia
• Support services
• Trade sale
• Australia
• Archer Capital
• Logistics
• Exit