PAI Partners to sell air cargo handler Swissport to China’s HNA

European private equity firm PAI Partners, has signed an agreement to sell ground handling and cargo services provider Swissport global, to Chinese conglomerate HNA Group for a total transaction value of CHF 2.7 billion.

According to its website, Swissport operates in the busy cargo bases of Seoul and Tokyo in Asia but has no business in China except being a minor shareholder in Hong Kong groundhandler Jardine Aviation Services. The transaction is subject to customary regulatory and anti-trust approvals by the relevant authorities.

Under PAI’s ownership, Swissport considerably extended the geographical range and volume of its activity through both internal growth and outside acquisitions that included ground handling companies Flightcare, IAS and Servisair.

PAI, a Paris-based private-equity firm, bought Swissport for 900 million francs from Ferrovial SA in 2011. With a workforce of around 60,000 personnel, Swissport is active at more than 270 stations in 48 countries across five continents, and generates consolidated operating revenue of CHF 3 billion.

Adam Tan, president of the HNA Group added: “HNA is excited to support Swissport’s world class management team as they continue to provide the highest quality service to the airline industry and their passengers”.

The deal will bring to an end separate discussions that PAI was holding about listing Swissport on the stock market.

Based in Haikou, southern China, HNA posted 2014 sales of Dollars 25 billion, and in recent years has expanded from a regional logistics company to an global player in aviation services and financing, airport management and tourism.

“The acquisition by HNA will enable the company to grow in the underpenetrated Asian markets and in China in particular thanks to HNA’s strong roots in the region”, Ricardo (LSE: RCDO.L – news) de Serdio, partner at PAI, said in a statement.

Swissport has changed hands a number of times since British firm Candover bought it from original owner Swissair for 580 million francs in 2002.