September 16, 2016 / 6:45 AM / 3 years ago

John Menzies buys peer BBA Aviation's aircraft services unit

Sept 16 (Reuters) - UK airport services and logistics group John Menzies Plc said it would buy peer BBA Aviation Plc’s ASIG commercial aircraft services unit in a deal worth $202 million, taking a major step in consolidating a fragmented industry.

Menzies said the deal, which is expected to materially enhance its earnings in the first full year, would be funded via a 75 million pound ($99 million) fully underwritten rights issue and a new debt package.

The ASIG unit provides refuelling, baggage handling, equipment maintenance and de-icing services across 80 airports in North America, Central America, Europe and Asia.

BBA said separately the disposal of ASIG, one if its smaller units, would allow it to streamline its business to focus on its main businesses. ($1 = 0.7561 pounds) (Reporting by Esha Vaish in Bengaluru and Maiya Keidan in London; Editing by Sunil Nair)

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