Security and baggage tracing services leader Safe Bag has acquired 51% of the Pack&Fly Group of companies.

The binding agreement for Pack&Fly, itself a worldwide operator in the luggage wrapping market with a particular influence in Russia, follows negotiations earlier this year.

The investment agreement is expected to be formally confirmed on 30 July, following the successful completion of due diligence.

PART CASH SHARE DEAL

Under the terms, Safe Bag will pay €100,000 ($122,785) as an advance on the final price.

Shares equal to 25.5% of the capital of Pack&Fly will be acquired by Safe Bag via payment in cash at closing.

The remaining 25.5%, subject to approval by Safe Bag shareholders, will be underwritten through a capital increase reserved to Pack&Fly Group reference shareholders Polad Akmedov and Alexander Fedoseev.

Following the transaction, Fedoseev and Akmedov will become minority shareholders of the Safe Bag Group.

Fedoseev will maintain a 49% minority quota of the capital of the companies in the Pack&Fly Group. He will also assume and maintain the role of CEO.

 

CROSS-SELLING OPPORTUNITIES

Commenting on the deal, Alessandro Notari, CEO of Safe Bag said: “With the acquisition of Pack&Fly, we are achieving the objectives of Plan 2020 2 years ahead of schedule.

“I would like, here, to thank our new partners Alexander Fedoseev and Polad Akhmedov with whom we share the passion for excellence and attention to results and with whom we are already working to identify and launch all the potential economic opportunities deriving from the merger of the two groups such as the cross selling of certain products and the synergic rationalisation of structure. The future is smiling at us”.

Founded in 2011, Pack&Fly Group boasts 17 locations in Russia, including at Moscow’s Domodedova, Sheremetyevo and Saint Petersburg airports.

It is also present at airports in Lithuania, Kyrgzstan, Estonia and in recent years has entered Asia with a concession at Thailand’s Krabi Airport.

The news comes as Safe Bag last week revealed turnover of €30.5m (+15.1%) in 2017, as it collected and renewed a number of new airport contracts at Vancouver, Warsaw, Ottawa, Lima, Katowice, Kraków, Olbia, Genoa and Rome airports.

However, net profit slid by 23% due to taxes, net financial charges and currency impacts.