Fraport AG and WFS have inked a strategic partnership in the area of airfreight handling, whereby Fraport is selling a 51-percent share in its Frankfurt-based Fraport Cargo Services GmbH (FCS) subsidiary to WFS. The transaction is expected to close by September 2015.
The joint goal of this partnership is to expand FCS’ global reach in the rapidly moving and highly competitive air cargo industry to achieve sustainable success, as well as strengthening Frankfurt Airport’s role as a major air cargo hub. By entering into this strategic partnership, Fraport is retaining a major 49-percent stake in FCS, while maintaining its substantial role in the company’s management in the future, too. The value of the transaction was not disclosed by both parties.
Fraport AG executive board chairman Dr. Stefan Schulte said: “As in the past, the cargo business continues to be vitally important for our business model. To continue developing our cargo handling business successfully, it has been our wish to find a strong and competent partner that offers a strong international network. Thus, we are pleased today to announce this new strategic partnership with such a renowned international partner like WFS, to gain an even broader globally-linked base for successfully developing FCS further in the future.”
Frankfurt Airport (FRA) is, by far, the most interesting air cargo location in Europe. As a traditional high-quality air cargo handler, FCS is a leading player in the air cargo market at FRA, serving international airlines and logistic companies at the company’s modern freight terminals at the airport’s CargoCity South. To ensure fast and smooth handling, FCS employs more than 600 experienced people taking special care of cargo and using tested and established processes with outstanding technology.
Olivier Bijaoui, WFS’ executive chairman, president & CEO, said: “This is a major transaction that positions our joint company as the leading cargo handler at one of the biggest cargo airports in the world. As Europe’s largest economy, Germany is obviously a prime focus in our growth plans. We could not ask for a stronger partner than Fraport, with whom we share a passion for quality and performance and likewise who has demonstrated a commitment to the cargo handling industry over more than 40 years.”
With annual revenues of €700 million, the new partner WFS is the world’s largest cargo handler and a leading global provider of ground handling and technical services. Founded in 1971, WFS employs about 14,000 staff and is present at over 145 major airports in more than 22 countries on five continents. The company serves 50 million passengers and handles over four million metric tons of cargo per year for 300 airline customers.