Blackstone Acquires 22% Stake in AGS Airport

The world’s largest asset manager Blackstone on Friday announced that Blackstone’s infrastructure strategy for individual investors, has agreed to acquire a minority stake of 22% in AGS Airports (AGS), a platform of high-quality freehold airports providing access to key UK markets, from AviAlliance for $304.57 million.

Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the continued growth of the travel and tourism industries across the UK, the company said.

AviAlliance, one of the world’s leading airport investors and operators, which recently completed the purchase of AGS from Ferrovial and Macquarie, will remain the majority shareholder in AGS with a 78% stake.

AGS handles more than 11 million passengers annually and is the owner and operator of three critical UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.

Passenger numbers at Aberdeen International Airport soared, with 2.3 million people passing through the airport, marking a 24% jump in international traffic and a 9.3% rise in domestic users.

Recently published accounts showed turnover rose to $67.26 million at Aberdeen International Airport Ltd in 2023, an increase of 12% from $60.01 million in 2022. Pre-tax profits soared to $8.81 million last year, up from $344,749 in 2022.

Focus on Transportation

Blackstone Infrastructure CEO Greg Blank said that transportation remains a key thematic focus area for Blackstone, given continued strong global growth in leisure travel. AGS has access to one of the most diversified airline mixes of any major UK airport, and the company’s recent capital improvements aimed at accommodating large aircraft pave the way for new routes and higher traffic growth, he said.

Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments, said that they were pleased to bring Blackstone as a minority shareholder in AGS. Both PSP and Blackstone are like-minded investors with long-term patient capital to support the development of AGS, which will benefit from the operational expertise of AviAlliance, Curthan added.

Gerhard Schroeder, Managing Director of AviAlliance, said: “We look forward to developing a constructive and long-term partnership with Blackstone for the benefit of AGS, its management and employees, as well as all other stakeholders at the three airports. Together, we will further strengthen the position of AGS in both Scotland and the wider United Kingdom.”

Blackstone has more than $1.1 trillion in assets under management, including global investment strategies focused on property, life sciences, growth equity and hedge funds, while Blackstone Infrastructure has a strong track record of investing in transportation infrastructure.

Blackstone Infrastructure has a strong track record of investing in transportation infrastructure, including through Mundys, the world’s largest toll road platform and manager of airports Roma Fiumicino and Ciampino, Signature Aviation, the world’s largest network of private aviation terminals, and ASPI, Europe’s largest toll road platform.