JOHN Menzies has announced a "strategic withdrawal" from the Peruvian aviation services market, netting itself more than £10 million in the process.
The Edinburgh-based group said it had agreed terms with Sandoval Group to dispose of its 50 per cent stake in local joint venture Talma Menzies.
Menzies will receive proceeds of £10.3m in cash which will be used, initially, to pay down debt, Howev
er, the firm said it would look to plough some of the funds into its rapidly-expanding aviation business as it targets new territories.
Last month, Menzies reported a steady rise in annual sales and underlying profits and said its aviation business would enjoy double-digit profit growth for the "foreseeable future".
Aviation managing director Craig Smyth said: "We have enjoyed a profitable partnership with the Sandoval Group and wish them well for the future as they look to adapt the business model to the changing local business environment and diversify from the core aviation services market.
"We remain focused on our strategy of creating regional densities with airlines in attractive markets," he added.
Talma Menzies booked a profit before tax of £1.7m for the year ended 29 December 2007. Earlier this month, Menzies Aviation announced a bolt-on acquisition in Scandinavia, paying more than £7m for Novia Sverige, part of Novia Scandinavia.
Novia Sverige is a ground-handling business operating at Stockholm and Gothenburg airports in Sweden.
The full article contains 243 words and appears in The Scotsman newspaper.
