Swissport has signed binding transaction agreements to acquire ASC, which provides ground handling and cargo services in London Heathrow and Gatwick airports.
The airport ground services and air cargo handling provider noted that Heathrow is the fifth-largest airport worldwide by passenger volume, and more than 60% of Britain's air freight passes through London's airports.
Gatwick, meanwhile, the UK's second-busiest airport, handles over 43 million passengers annually across more than 200 global destinations.
"This strategic acquisition sets Swissport up for continued growth in both ground and cargo handling at London's hub airports," Swissport said.
Specifically, the airport logistics service provider noted that the transaction provides additional capability to Swissport's ground handling operations, which will further enhance its position as a resilient and innovative partner to airlines and airports, and gives it access to additional cargo capacity at two warehouses at London Heathrow.
"Key pillar of growth strategy"
"The UK is one of our core markets worldwide. Strengthening our presence in the country is a key pillar of our growth strategy. Swissport has a clear M&A strategy to enhance our platform in markets where we can optimise growth, margin and resilience across the portfolio," said Warwick Brady, president & CEO of Swissport International.
"We will continue to pursue our ambitious expansion agenda by combining strong organic growth and strategic M&A in critical geographic markets across our ground handling, cargo, and hospitality businesses globally, providing a world-class service to our customers," he added.
Karen Cox, Swissport's CEO for the UK and Ireland, said: "We are really excited about the opportunities this agreement provides to enhance our services and further grow our offerings in the UK. Swissport and ASC share the same values of safety, operational excellence, customer focus, and innovative technology solutions. This means brilliant opportunities for our employees as they are part of a growing, global company in a thriving sector."
Ignazio Coraci, chairman of the Board of ASC, noted that the agreement will allow its customers, employees, and partners to benefit from Swissport's extensive global footprint with a broader range of services across its network.
"By combining our experienced teams with a proven track record of consistent high-quality service delivery, we will continue strengthening resilience and driving greater efficiency to our airline partners through our integrated and comprehensive service offering," Coraci said.
Swissport said the deal remains subject to customary closing conditions and did not disclose its financial terms.
In addition to airport ground services and aircraft cleaning, Swissport offers air cargo handling to some 41 airline customers at London Heathrow and Gatwick.
