China’s HNA buys Swissport International from PAI Partners
China’s HNA Group has agreed to buy ground handling and cargo services provider Swissport International from PAI Partners for CHF2.7 billion ($2.8 billion).
The company is responsible for ground services for around 229 million passengers and 4.1 million metric tons of cargo each year, working with around 700 clients in the aviation sector. It has 60,000 staff and is active in 269 airports across 48 countries.
PAI acquired a 98% stake in the company for CHF1.2 billion in 2011 via PAI Europe V, a 2008 vintage fund with a corpus of EUR2.7 billion ($2.9 billion).
It claims to have significantly increased the size of Swissport's platform, consolidating leadership positions in Western Europe and North America, and boosted exposure to fast-growing markets in Latin America, the Middle East and Africa. There have also been bolt-on acquisitions such as ground handling operators Flightcare, IAS and Servisair.
Swissport has annual consolidation operating revenue is CHF3 billion. According to PAI's website, in 2010 the company generated sales of CHF1.8 billion.
"Swissport has proven to be able to successfully capitalise on the underlying market growth in the airport services industry and the consolidation opportunity. The acquisition by HNA will enable the company to grow in the underpenetrated Asian markets and in China in particular thanks to HNA's strong roots in the region," Ricardo de Serdio, a partner at PAI, said in a statement.
Founded in 1993, HNA was originally Hainan Airlines, but now owns and operates a string of airlines and airports and has interests in financial services, real estate, retail, tourism and logistics. It generated revenue of more than $25 billion in 2014. Several previous acquisitions have been completed alongside its Hong Kong-based private equity partner Bravia Capital.
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