SATS S58 has announced the proposed acquisition of Terminal & Transporttjänst i Sigtuna AB (TT) and APH Logistics AB (APH) by its wholly-owned subsidiary, WFS Sweden AB, for SEK94 million ($12.1 million).
According to SATS, the move will strengthen the group's presence in the Stockholm market and its specialised cargo handling capability, as well as add new capacity for growth.
Both TT and APH operate out of Stockholm Arlanda, the largest airport in Sweden. TT provides cargo handling and transportation services to airlines, freight forwarders and time-critical medical suppliers, while APH specialises in border inspection services with perishable and cold chain facilities, which complements the air cargo services provided by TT.
The group says it has been focused on advancing its twin-engine growth strategy by strengthening its core operations in Singapore and replicating its capabilities to expand internationally.
On April 3, 2023, SATS acquired global air cargo logistics provider Worldwide Flight Services (WFS), transforming the group into a global air cargo logistics player with comprehensive worldwide coverage across the Americas, Europe, the Middle East and Asia.
Its preeminent cargo platform has a network of over 220 locations in 27 countries, covering trade routes that control more than 50% of global air cargo volumes.
See also: Vitasoy ‘open to collaboration’ as speculation mounts over Philip Ng takeover
The group operates in seven of the top 10 cargo airports in Europe and five of the top 10 airports in North America and Asia, respectively. It manages 800,000 sqm of cargo warehouse space at or near airport locations, enabling the group to capitalise on growth across the cargo supply chain and benefit from stronger demand for e-commerce and specialised cargo handling for items such as pharmaceuticals and perishables.
John Batten, CEO of Gateway Services, WFS EMEAA, says: “The investment is a significant milestone in strengthening our offering in Stockholm Arlanda Airport, ranked in the top 30 European cargo airports. The addition of TT and APH will provide WFS Sweden with an additional 13,000 sqm of warehouse space and downstream air cargo handling capacity to allow it to diversify and expand its product offerings to meet customers’ demands.”
He adds: “Seamless end-to-end connectivity that will enable greater efficiency and speedier cargo handling is the way forward to provide added-value service in this evolving industry. We will be able to broaden our service to include new services such as Sweden's local and EU cargo transport and border inspection points. The investment will also provide an opportunity for WFS’s global customers to benefit from this expansion in Sweden.”
See also: Anglo American to sell rest of coal business in US$3.8 bil deal
The proposed transaction is not expected to have any material impact on SATS’ net tangible assets per share and consolidated earnings per share for the current financial year.
Shares in SATS closed 1 cent lower or 0.39% down at $2.55 on March 15.
