Swissport acquires leading cargo handling specialist CSC to become the world's most rounded airport services provider

Zurich Airport, August 27, 2002 – Swissport International is to acquire all the activities of Cargo Service Center B.V. at 61 stations in 15 countries from German-based D. Logistics AG.

The acquisition puts Swissport International at the forefront of the global ground handling industry.

This major acquisition is a further substantial step in Swissport's ongoing expansion and diversification strategy, which aims to establish the Swiss-based group as a genuine "full service provider” in the airport ground handling field. With the airport services sector continuing to both consolidate and expand, providing a global network of stations and an attractive product range are becoming increasingly essential to any operator's future business success. In acquiring Cargo Service Center (CSC), Swissport is substantially strengthening the appeal of both its station network and its product offer, and is now the biggest provider of a full range of airport ground services on the international stage.

The Dutch-based CSC Group is one of the world's best and best-known air cargo handling companies. The group's 2000 employees handle some 1.2 million tonnes of airfreight a year for over 100 customers, and generated total turnover of around CHF 200 million in 2001.

"Our amalgamation with Swissport will provide CSC's customers and staff alike with a sound and promising future," says John McDonagh, CEO of Cargo Service Center. "Our partnership offers tremendous added value; and that's something that's abundantly clear to everyone concerned."

One-stop shopping and key synergies ahead

With continuing cost pressures on their operations, airlines are likely to increasingly seek "one-stop" solutions for the airport services they require, instead of slowing down these processes by obtaining such services from multiple providers. Amalgamating various product components also offers sizable synergic potential, which will benefit not only Swissport but its customers, too. "We want to provide our airline customers with a top-quality all-inclusive product," confirms Joseph In Albon, CEO of Swissport International. "And we want to offer them all the various airport services from a single source – ourselves."

Swissport strengthens its management team

Swissport International has appointed Dr. Ludwig H. Bertsch as its new Executive Vice President Corporate Services, with immediate effect. Bertsch, the former President & CEO of Swisscargo, has been advising Swissport since March on the development of its cargo activities. In his new capacity – in which he will also sit on the company’s Executive Management – Bertsch is responsible for the group’s Cargo Services and Executive Private Aviation business areas, and for group-level human resources, IT, supply management and operations support issues and concerns. For the next few months, however, his prime objective will be to ensure the smooth and successful integration of CSC’s business operations into the Swissport group.

Following the acquisition of CSC, Swissport International Ltd. (which is majority-owned by Candover Partners Ltd., a leading London-based European buyout specialist) will be active at 164 airports, handling more than 2.5 million aircraft, over 55 million passengers and some two million tonnes of cargo a year for more than 600 airline customers. The Swissport workforce of over 18 000 employees is active in 32 countries on four continents, and expects to generate consolidated operating revenue of some CHF 1.3 billion in 2002.