LBO France exits WFS to Platinum

José Rojo
27 April 2015

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LBO France has sold French cargo-handling service provider Worldwide Flight Services (WFS) to US buyout firm Platinum Equity.

LBO France has yet to comment on the proceeds it will obtain from the sale, but market sources place it between €300-350m.

According to these same sources, WTS's management will invest alongside Platinum Equity and retain a minority stake in the business.

The transaction, which is expected to complete by the end of June, will see the Los Angeles-based GP draw equity from Platinum Equity Capital Partners III.

Having held a final close on $3.75bn in September 2013, the buyout vehicle targets investments in the transportation, logistics and distribution services sectors.

The SBO comes almost nine years after WFS was picked up by LBO France in August 2006. The €315m corporate spinout saw the mid-market player acquire a major stake from Nanterre-based construction business Vinci, according to unquote" data. IFE Mezzanine also invested an undisclosed sum via its IFE II Fund.

Under LBO's ownership, WFS has undergone international expansion across complementary sectors in Asia, Africa and the Middle East.

In June 2012, the cargo-handler merged with 3i-backed Belgian business Aviapartner. The resulting group was controlled by LBO France, with 3i remaining as a shareholder. The latter sold its stake in Aviapartner, acquired in 2005, to HIG Capital in January 2015.

In October 2014, WFS entered the Latin American ground-handling services sector when it acquired a controlling stake in Brazil-based Orbital Group.

Company
Founded in 1983 in Roissy, WFS provides cargo- and ground-handling services to 300 airlines across 140 airports in 22 countries.

Headquartered in Paris, the company employs a workforce of 12,000 and claims to handle an annual average of 4 million tonnes of cargo and 50 million airline passengers. In 2014, the business posted a €650m turnover.

People
Partner Jérôme Guez led the deal for LBO France, while Platinum Equity was represented by European investment team head Bastian Lueken. Olivier Bijaoui is CEO of WFS.

Advisers
Vendor – Sycomore Corporate Finance (Corporate finance); Mayer Brown (Legal); Deloitte Transaction Services (Financial due diligence); Roland Berger (Commercial due diligence).
Management – Scotto & Associés (Legal).