AviAlliance to acquire AGS Airports in £1.5 billion deal

AviAlliance is to acquire AGS Airports which operates Aberdeen, Glasgow and Southampton airports for £1.53 billion.

The private airport investor announced the acquisition of the airports’ operator from current owners Ferrovial and Macquarie in a deal which, subject to regulatory approvals, is expected to complete in the first quarter of 2025.

AGS Airports, set up in 2014, operates Aberdeen, Glasgow, and Southampton airports, which serve large, growing regions of the UK and ‘significantly’ contribute to their local economies. It was put up for sale earlier this year.

AviAlliance said AGS Airports would be developed “responsibly” under the deal to improve air connectivity, expand their route networks, improve the passenger experience and support local communities over the long term.

Continued demand for business and leisure travel is expected drive growth in domestic and international passenger numbers.

AviAllianace is the wholly-owned airports platform of the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors and a long-standing investor in UK infrastructure and real estate, which includes majority ownership of Forth Ports, one of the largest port operators in Scotland, and Angel Trains, the largest rolling stock company in the UK.

The airports operator was set up in 1997 and acquired by PSP Investments in 2013. It has a track record of airport investment and growing passenger numbers.

Its portfolio of four airports, Athens, Düsseldorf, Hamburg, and San Juan (Puerto Rico), served 73 million passengers in 2023, 20% more than in 2022.

AviAlliance 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.”

Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments, said the deal fitted with its strategy to invest in areas it has expertise.

He said: “PSP Investments is a significant investor across several sectors in Scotland and more broadly, the UK, with more than £10bn of investments in the UK.

“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 these airports play in supporting economic growth in Scotland and England.”