SATS Ltd on 15 March proposed the acquisition of Terminal & Transporttjänst i Sigtuna AB (TT) and APH Logistics AB (APH), collectively through its subsidiary WFS Sweden for SEK94 million, or around approximately SGD12.1 million (US$9 million).
Both TT and APH operate out of Sweden’s Stockholm Arlanda airport and provide cargo handling and transportation services to airlines, freight forwarders and time-critical medical suppliers. APH specialises in border inspection services with perishable and cold chain facilities, which complements the air cargo services provided by TT.
This move is expected to strengthen SATS’ presence as well as its specialised cargo handling capabilities and capacity for the Stockholm market.
The Singapore-based aviation cargo, ground handling and food solutions company has been focused on advancing its ‘twin-engine’ growth strategy by strengthening its core operations in the city state and replicating its capabilities to expand internationally.
On 3 April 2023, it acquired Worldwide Flight Services, transforming the group into a global powerhouse with a comprehensive network across the Americas, Europe, the Middle East, and Asia, covering trade routes that control more than 50 percent of global air cargo volumes.
The combined group is known to operate in seven of the top 10 cargo airports in Europe and five of the top 10 airports in North America and Asia, respectively.
John Batten, CEO of Gateway Services at WFS EMEAA, said the addition of TT and APH will provide an additional 13,000 sqm of warehouse space and downstream air cargo handling capacity to allow it to diversify and expand its product offerings, including introducing new services to cope with local and EU cargo transport and border inspection points.
In a separate release, SATS announced its sale of US subsidiary Maytag Aircraft to Albion River for US$46million. Maytag provides aircraft fuelling services, air terminal and ground handling services, and base operations support exclusively to the US Department of Defence in the US and overseas.
SATS said the divestment is in line with its strategy, following the acquisition of WFS, to streamline operations, deliver synergies and strengthen its balance sheet.
“This divestment is part of our efforts to rationalise our portfolio to concentrate on core businesses that have a strategic fit for the group, focusing on high-value segments that will drive sustainable growth,” said Manfred Seah, CFO of SATS Ltd.
“The group’s financial priorities remain to repay debt, reinvest in the business, and resume dividend distribution to our shareholders.”
