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Highlights:
- Major Acquisition: PSP Investments has acquired AGS Airports, which operates Aberdeen, Glasgow, and Southampton airports, in a £1.5 billion deal.
- Strategic Expansion: The acquisition is part of PSP’s broader strategy to strengthen its airport investments through its AviAlliance group, which already holds stakes in major European and American airports.
- Enhanced UK Portfolio: With this purchase, PSP further expands its UK presence, adding to existing investments in Forth Ports and Angel Trains.
Canadian pension fund PSP Investments has agreed to acquire AGS Airports, the UK operator of Aberdeen, Glasgow, and Southampton airports, in a transaction valued at £1.5 billion. The deal includes £900 million in equity and is set to be completed by early next year. This acquisition marks another significant move in the airport sector as travel demand surges post-pandemic.
Strengthening Aviation Portfolio
PSP Investments, making the acquisition through its dedicated airport investment arm, AviAlliance, aims to bolster its portfolio of global airport assets. AviAlliance already holds stakes in Athens, Düsseldorf, Hamburg, and San Juan airports. With the addition of AGS Airports, PSP further diversifies its aviation holdings, tapping into a strategic network of UK airports that play crucial roles in regional and international travel.
Surge in Airport Acquisitions
The AGS deal is part of a broader trend in increased airport transactions as the travel industry experiences a rebound from the impacts of the COVID-19 pandemic. Ferrovial’s decision to sell its stake in AGS comes shortly after the infrastructure giant agreed to divest most of its share in Heathrow Airport. The acquisition reflects the growing interest among institutional investors in stable, long-term infrastructure assets, particularly in the aviation sector, which is expected to see sustained growth.
Enhanced UK Investments
The acquisition also signals PSP’s deepening commitment to the UK market, where it already has significant stakes in infrastructure assets. Beyond AGS Airports, PSP’s UK investments include Forth Ports, a major operator of ports across the country, and Angel Trains, one of the UK’s largest train leasing companies. The move aligns with PSP’s strategy to focus on high-quality, income-generating assets in resilient sectors.
Positive Outlook for AGS Airports
AGS Airports operates three key regional hubs in the UK, providing vital connectivity for both domestic and international travel. The company has demonstrated strong recovery from the pandemic-induced downturn, positioning itself for future growth. PSP’s acquisition is expected to bring additional capital and strategic support, helping AGS Airports expand its operations and enhance its service offerings.
A Strategic Move for PSP
This acquisition underscores PSP Investments’ long-term strategy of building a robust portfolio of high-quality infrastructure assets. By leveraging AviAlliance’s expertise and experience in airport management, PSP aims to enhance the operational efficiency and financial performance of AGS Airports. The deal highlights the increasing appetite for infrastructure investments that provide stable returns, especially as global travel demand continues to recover.
As the transaction moves towards completion, PSP’s expanded footprint in the UK signals its confidence in the country’s economic prospects and its commitment to further strengthening its position as a leading player in the infrastructure investment space. The acquisition of AGS Airports is expected to contribute significantly to PSP’s portfolio, driving growth and value creation in the years ahead.
