Brookfield set to buy World Freight Company in $1.2 billion deal, sources say
Brookfield's Acquisition of World Freight Company: Key Details and Context
By Kane Wu
Deal Overview and Announcement Timeline
HONG KONG, May 14 (Reuters) - Brookfield Asset Management is set to acquire World Freight Company (WFC) for an enterprise value of about $1.2 billion from investment firms EQT and PAI Partners, two people with knowledge of the matter said on Thursday.
The firms have finalised discussions and a deal is expected to be announced as early as Thursday, the sources said.
Comments from Involved Parties
Brookfield and EQT declined to comment while PAI and WFC did not immediately respond to Reuters requests for comment.
Industry Context and Market Conditions
The planned sale comes amid global transportation volatility as the Iran war has driven up fuel prices and air freight rates, causing serious disruptions in air traffic and shipping routes.
About World Freight Company
Formed in 2004 in Paris, WFC acts as a general sales and service agent for airlines globally, meaning it has exclusive selling rights of an airline's cargo capacity at agreed terms in a specific territory or region, reducing an airline's costs.
Global Reach and Operations
Comprising more than 300 entities across 80 countries, WFC says on its website that its network manages more than 3 million tons of capacity annually for its airline partners.
Ownership History and Previous Deals
PAI and Baring Private Equity Asia (BPEA), which merged into Swedish-headquartered EQT in 2022, bought the cargo freight services provider in 2018 for an undisclosed amount and each owns 50%.
The deal was worth over 600 million euros, Reuters reported at the time.
Previous Sale Attempts
EQT and PAI sounded out buyer interest for the company in 2021, hoping to fetch more than 1.5 billion euros ($1.73 billion) from a sale, Reuters reported at the time.
Reporting Credits
(Reporting by Kane Wu; Editing by Muralikumar Anantharaman and Alexander Smith )
