StockMarketWire.com - John Menzies said it achieved its strategic goal of creating a pure play aviation services group by entering a conditional agreement to sell Menzies Distribution, its print media division, to investment funds managed by Endless LLP, for £74.5m on a cash and debt free basis.

As part of the Disposal, 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.

The proposed disposal creates a pure play global aviation services business that is operating in a structural growth market and marks Menzies' exit from the market for print media and retail logistics.

The Menzies Board believes the proposed disposal will:

- Create a pure play, focused global leader in aviation services;

- Allow Menzies to focus its management and capital resources entirely on expanding its position in the structurally growing aviation services market;

- Remove Menzies' exposure to the structurally declining print media market; and

- Allow Menzies Distribution to pursue its own growth ambitions.

CURRENT TRADING

Menzies Aviation continues to trade positively and we remain on track to deliver our full year expectations.

Labour issues within North America continue to prevail but are being addressed and are more than offset by positive trading and continuing contract gain momentum across the rest of the network.

Overall group net debt is in line with our expectations.

Menzies will announce its interim results for the six months ended 30 June 2018 on 14 August 2018.

John Menzies chairman Dr Dermot F Smurfit commented: "I am delighted to announce today the sale of Menzies Distribution.

"In doing so we create a pure play aviation services business that operates in a structural growth market and is very well placed to take advantage of the many exciting opportunities that exist.

"In his role as Menzies CEO, Forsyth Black will now focus on growing our market share in the aviation services market, increasing our operating margins and continuing to deliver excellent services to our customers."




Story provided by StockMarketWire.com