AviAlliance acquires AGS Airports for £1.53 Billion

AviAlliance, a prominent global player in airport investment and operations, has announced the acquisition of AGS Airports from Ferrovial and Macquarie for an enterprise value of £1.53 billion. The deal, pending regulatory approvals, is expected to close in the first quarter of 2025.

AGS Airports, founded in 2014, operates Aberdeen, Glasgow and Southampton airports, which are integral to the local economies of their respective regions in the UK. The airports serve both domestic and international travellers, benefiting from strong demand in the British air travel market. AviAlliance intends to leverage its global expertise to enhance connectivity, improve passenger experiences and support local communities through the continued development of AGS Airports.

AviAlliance is the airports platform of PSP Investments, one of Canada’s largest pension investors. Since acquiring the platform in 2013, AviAlliance has expanded its portfolio and shown significant growth, with its four airports serving 73 million passengers in 2023, a 20% increase over the previous year. PSP Investments is a major player in UK infrastructure, with over £10 billion in investments across various sectors, including ports and rail.

Gerhard Schroeder, Managing Director of AviAlliance, said: “Aberdeen, Glasgow and Southampton airports provide vital connectivity for communities in Scotland and the South East of England. As an experienced airport investor and manager with extensive industry expertise, AviAlliance will enable each airport to reach its full potential. We are committed to supporting the airports in the long-term, expanding their route networks, further enhancing the passenger experience, and implementing the airports’ sustainability strategies.”

Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments at PSP Investments, said: “Our PSP Infrastructure strategy focuses on investing in sectors where PSP Investments has strong expertise and a proven track record of delivering value for our beneficiaries. Airports are a sector that aligns with this strategy, given AviAlliance’s deep operational expertise. We are delighted to add AGS Airports to our infrastructure portfolio and look forward to working with our key stakeholders to improve services for the communities in which AGS Airports operate.”

The acquisition marks a significant step in AviAlliance’s strategy to expand its airport portfolio and further its operational capabilities in key markets.