FORT WORTH, Texas, August 24, 1999 -- Worldwide Flight Services, one of the world's largest providers of ground services to the aviation industry, announced today its second acquisition within two weeks - Aerolink International, Inc., of Pittsburgh, Pennsylvania. Terms of the transaction were not disclosed.
Aerolink operates a cargo-warehousing business for commercial air carriers at 11 airports in the United States and Canada. Its two largest customers are British Airways and US Airways.
The acquisition strengthens Worldwide's position as one of the world's largest independent providers of ground services to air cargo carriers and passenger airlines. The company is represented in 86 airports around the world, including 25 of the 30 busiest U.S. airports and five of the 10 busiest airports in Europe. It will have some 10,000 employees.
On August 16, Worldwide Flight Services had announced the purchase of Miami Aircraft Support, Inc., of Miami, Florida. MAS provides ground services for airlines at 31 airports, including 19 where Worldwide was not previously represented.
The acquisition of Aerolink gives Worldwide operations in four airports where neither it nor MAS has a presence - Pittsburgh, Buffalo, Cleveland and Columbus. The other airports where Aerolink operates are Atlanta, Baltimore, Charlotte, Denver, Philadelphia, Montreal and Toronto.
Worldwide Flight Services, formerly AMR Services, was acquired last March by Castle Harlan Partners III from AMR Corp., the parent of American Airlines. Castle Harlan Partners III is a private equity investment fund organized and managed by Castle Harlan, Inc., the New York merchant bank.
Peter Pappas, chairman and chief executive officer of Worldwide, and Marcel Fournier, managing director of Castle Harlan, said in joint statement:
"The acquisition of Aerolink International's cargo warehousing operations gives Worldwide Flight Services a strong new capability that can be replicated at many of the airports where we do business. Aerolink is a valuable addition to our portfolio."
Castle Harlan Partners III is one of three investment funds totaling more than $1 billion that have been organized by Castle Harlan, Inc., and that represent major corporate and public pension funds, college endowments, foundations and individual investors. Since its founding in 1987, the firm has completed acquisitions exceeding $3.5 billion.
Castle Harlan's portfolio companies have included Delaware Management Company, the Philadelphia-based money-management firm with more than $32 billion in assets under management; Truck Components, Inc., the largest manufacturer of components for large-truck wheel-end systems; Smarte Carte, the world's largest airport luggage cart rental company, and MAG Aerospace, the leader in worldwide manufacture of aircraft sanitation systems.
Currently among its portfolio companies are Universal Compression, Inc., a leading independent provider of natural gas compression equipment and services; Commemorative Brands, Inc., one of the leading manufacturers of class rings and other specialty jewelry under the ArtCarved and Balfour brand names, and the Verdugt B. V. group of acid salts businesses, based in the Netherlands. Verdugt was acquired from BP Amoco in April.
Castle Harlan was founded by John K. Castle, a pioneer in institutionalizing private equity investing through limited partnerships and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and by Leonard M. Harlan, founder and former owner and chairman of The Harlan Company, a diversified real estate and corporate finance advisory firm.