AviAlliance acquires UK airport group

Global airport operator, AviAlliance, has announced the acquisition of AGS Airports from Ferrovial and Macquarie for an enterprise value of £1.53 billion.

The transaction is subject to regulatory approvals and is expected to complete in Q1 2025.

AGS Airports, established in 2014, operates Aberdeen, Glasgow, and Southampton airports in the UK.

These airports serve large and growing regions of the United Kingdom, significantly contributing to their local economies.

AviAlliance’s managing director, Gerhard Schroeder, said: “Aberdeen, Glasgow and Southampton airports provide vital connectivity for communities in Scotland and the South East of England.

“As a seasoned airport investor and manager with in-depth industry expertise, AviAlliance will enable each airport to realise their full potential.

“We are committed to supporting the airports over the long term to expand their route networks, further improve the passenger experience and implement the airports’ sustainability strategy.”

AviAlliance notes that it will “leverage its extensive global airport expertise to responsibly develop AGS Airports, enhancing air connectivity, improve the passenger experience, and support local communities”.

AviAlliance is the wholly-owned airports platform of the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors.

Founded in 1997 and acquired by PSP Investments in 2013, it has a long track record of traffic growth, operational excellence and superior passenger experience as well as investment in its airports.

Between them AviAlliance’s portfolio of four airports (Athens, Düsseldorf, Hamburg and San Juan, Puerto Rico) served 73 million passengers in 2023, an increase of more than 20% compared to 2022.

PSP Investments is a long-standing investor in UK infrastructure and real estate, having opened its second international office in London in 2016.

Its managing director and global head of infrastructure investments, Sandiren Curthan, said: “PSP Investments is a significant investor across several sectors in Scotland and more broadly, the United Kingdom, with over £10 billion of investments in the United Kingdom.

“Our PSP Infrastructure strategy consists of investing in sectors where PSP Investments has strong expertise and a track record of delivering value for our beneficiaries.

“Airports is a sector which fits that 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 to the communities in which AGS Airports operate, recognising the critical role that these airports play in supporting economic growth in Scotland and England.”