SP Plus to acquire Bags baggage services for USD 275m

Parking and ground transportation services provider SP Plus Corp. (NASDAQ: SP) has agreed to acquire baggage services provider Baggage Airline Guest Services, Inc. and Home Serv Delivery, LLC, their subsidiaries and affiliates (collectively, “Bags”), for USD 275m in cash, the company said. 

The company plans to finance the transaction with an expanded senior credit facility, which the company is in the process of finalizing.

The transaction, which remains subject to consummation of financing, antitrust clearance and other closing conditions, is expected to close by the end of November 2018 and, excluding transaction costs, is not expected to materially impact SP+´s fiscal 2018 results. 

Bags is a provider of baggage delivery, remote airline check in, and other related services, primarily to airline, airport and hospitality clients. Bags combines service with technologies to provide remote baggage handling and related services. Bags operates in over 250 cities with approximately 3,000 full time employees. Its clients include major airlines, airports, and leading hotels and resorts. Bags handles more than 5.0m checked bags annually. Bags generated approximately USD 145 m in revenues in 2017.

SP+ provides professional parking management, ground transportation, facility maintenance, security, and event logistics services to property owners and managers in all markets of the real estate industry. The company has more than 20,000 employees and operates approximately 3,500 facilities with 2.0 m parking spaces in hundreds of cities across North America, including parking-related and shuttle bus operations serving approximately 70 airports. 

Morgan Stanley and Co. LLC acted as exclusive financial advisor and Katten Muchin Rosenman LLP acted as legal advisor to SP+. GrayRobinson, P.A. acted as legal advisor to Bags.