26th Jul 2018 11:24
LONDON (Alliance News) - Logistics firm John Menzies PLC said Thursday it has signed a conditional agreement to sell its print media division Menzies Distribution to investment funds managed by Endless LLP for an enterprise value of GBP74.5 million, achieved its strategic goal of creating a pure play aviation services group.
Under the terms of the sale agreement, Menzies will retain a 10% equity stake in the business, while Menzies Distribution will be responsible for the funding of Section B of the Menzies defined benefit pension scheme, which represents 17% of the assets and liabilities of that scheme as at December 31, 2017.
John Menzies said the sale will allow the company to focus its management and capital resources entirely on expanding its position in the structurally growing aviation services market and remove Menzies' exposure to the structurally declining print media market.
Upon completion of the disposal, the company will appoint Forsyth Black, currently president & managing director of Menzies Aviation, as chief executive officer of the group. Currently there is no group CEO.
The company also said that its aviation unit continues to trade positively and remains on track to deliver full-year expectations. Labour issues within North America continue to prevail but are being offset by positive trading and continuing contract gains, it added.
John Menzies intends to least maintain its interim and full-year dividend in line with last year. John Menzies will announce its results for the six months ended June 30 on August 14.
Shares in the company were trading 8.2% higher at 648.00 pence each on Thursday morning.
Related Shares:
MNZS.L