Brookfield Asset Management is nearing a US$1.2 billion deal to acquire World Freight Company, enhancing its logistics portfolio amid rising air cargo demand.
Brookfield Asset Management is close to acquiring World Freight Company in a transaction valued at about US$1.2 billion, reported Reuters. The deal comes as rising fuel costs and shipping disruptions increase the importance of air cargo services.
Based in the Paris area, World Freight Company does not operate aircraft but acts as a general sales and service agent, selling cargo space on behalf of airlines in multiple markets. The firm manages more than three million tonnes of cargo capacity annually across a network spanning over 80 countries.
This business model has gained importance as air freight prices rise due to higher fuel costs and disruptions linked to the Iran conflict. Airlines benefit from outsourcing cargo sales to reduce operating costs while improving the utilization of available space.
Brookfield's acquisition would expand its exposure to global logistics, a sector critical to industries such as e-commerce, electronics, and industrial goods. The deal also provides EQT and PAI Partners with an exit from their 2018 investment in World Freight.
Additionally, Brookfield is close to securing a $935 million loan to finance the purchase, according to people familiar with the matter. The loan will take effect once the acquisition is completed, the sources said.
