Aviation services firm John Menzies has accepted a cash offer from Kuwait suitor Agility after previous offers were rejected.
Under terms of the acquisition, each Menzies shareholder will be entitled to receive 608 pence in cash per Menzies share.
Shares in the company were boosted more than three per cent on Wednesday morning.
Agility will create a combined group by combining Menzies’ business with its existing wholly-owned subsidiary, National Aviation Services (NAS).
NAS is already a big player in the airport services business, with a roster of customers including British Airways and Emirates.
In a statement on Wednesday, Hassan El-Houry, NAS CEO, said: “Employees of both companies will benefit from being part of a larger, stronger group that offers more career development and advancement opportunities.
“The combined business will have the capital to invest in the talent, technology, innovation, infrastructure, equipment, and sustainability leadership required to accelerate growth.”
Menzies has been valued at approximately £763m on an enterprise value basis.
The acquisition values the entire issued and to be issued ordinary share capital of Menzies at around £571m on a fully diluted basis.
A cash proposal made by the Kuwait-based company of 510 pence per Menzies share was unanimously rejected earlier this month. The Edinburgh-based airport services firm gave Agility a deadline of 30 March to make a fresh offer.
Menzies had dismissed the earlier proposal as “unsolicited and highly opportunistic”, with the £468m bid dubbed as not reflective of the firm’s “true intrinsic business worth or its prospects.”
Menzies’s chief executive Philipp Joeinig added at the time: “The board remains fully confident in the recovery and outlook for the global aviation services industry as it returns to pre-pandemic trading levels and benefits from long term structural growth drivers.”