Brookfield Asset Management has reached a deal to acquire World Freight Company (WFC) for an enterprise value of about $1.2 billion from EQT and PAI Partners, the three investment firms said late on Thursday.
The transaction is subject to customary closing conditions and is expected to complete by the end of 2026, said the three firms, without disclosing financial details.
WFC serves more than 300 airlines on 3,500 trade lanes and over 16,000 freight forwarders across more than 80 countries and key international trade routes, the three investment firms said in statements.
Deutsche Bank is the lead financial adviser to EQT, PAI and WFC, the two investment firms said.
The 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.
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.
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.
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.
Reuters
