SP Plus Corporation (NASDAQ: SP) (“SP+”, “SP Plus” or “the
Company”), a leading national provider of parking, ground
transportation, and related services to commercial, institutional
and municipal clients throughout North America, today announced
that it has completed its previously announced acquisition of
Baggage Airline Guest Services, Inc. and Home Serv Delivery, LLC,
their subsidiaries and affiliates (collectively, “Bags”), for an
all cash purchase price of $275 million.
Bags combines exceptional customer service with innovative
technologies to provide remote airline check-in, baggage handling
and related services. Based in Orlando, FL, Bags operates in over
250 cities in North America with approximately 3,000 employees. Its
clients include major airlines, airports, sea ports, cruise lines,
and leading hotels and resorts. Bags handles more than 5 million
checked bags annually. Bags generated approximately $145 million in
revenues in 2017.
As previously communicated, the transaction is not expected to
materially impact SP+’s fiscal 2018 results, excluding transaction
costs, and is expected to be accretive to cash flow in the first
year post closing. SP+ has secured a new $550 million credit
facility in conjunction with closing the transaction.
G Marc Baumann, SP+’s President and Chief Executive Officer,
said, “We are very excited to work with the Bags team, and look
forward to leveraging our complementary service lines to accelerate
growth and diversify our client base. I am confident that the
strategic and financial merits of the acquisition will greatly
benefit our shareholders, while the strength of the combined
company will create new opportunities for our clients and
employees.”
Bob Miles, President of Bags, said, “SP+ is the ideal partner to
help us grow our business and position Bags for long-term success.
We look forward to continuing to deliver outstanding service and
innovative, technology-driven solutions to our clients.”
The Company also posted to its investor relations website,
ir.spplus.com, an updated presentation providing more information
on the Bags acquisition, the strategic rationale for the
transaction, and select financial information and anticipated tax
benefits.
Media Contact:
ICR/Phil Denning (646) 277 - 1258 Phil.Denning@icrinc.com
Investor Contact:
ICR/Rachel Schacter (646) 277 - 1243
rachel.schacter@icrinc.com
About SP+
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 million parking
spaces in hundreds of cities across North America, including
parking-related and shuttle bus operations serving approximately 70
airports. SP+ is one of the leading valet operators in the nation
with more four and five diamond luxury properties, including hotels
and resorts, than any other valet competitor. The Company's ground
transportation division transports approximately 37 million
passengers each year; its facility maintenance division operates in
dozens of U.S. cities; and it provides a wide range of event
logistics services. For more information, visit www.spplus.com.
You should not construe the information on that website to be a
part of this release. SP Plus Corporation's annual reports filed on
Form 10-K, its quarterly reports on Form 10-Q, and its current
reports on Form 8-K are available on the Internet at www.sec.gov
and can also be accessed through the Investor Relations section of
the SP+ website.
About Bags
For more than 25 years, Bags has been on a mission to Make
Travel Easier. From convenient luggage delivery and remote airline
check-in to innovative guest services for the travel and
hospitality industries, Bags combines unique offerings with
unparalleled customer service to make travel less of a hassle for
individuals and companies alike. With operations in more than 250
cities in the U.S. and Canada, Bags handles over five million
checked bags and greets millions of guests each year. Bags proudly
provides services for all major airlines, cruise lines, sea ports,
renowned resorts & hotel chains, convention centers and
airports across the country. See how Bags simplifies travel at
www.bagsinc.com.
Forward-Looking Statements
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995,
including statements regarding expected tax and other anticipated
benefits of the acquisition by SP Plus of Bags, and other
expectations, beliefs, plans, intentions and strategies of SP Plus.
SP Plus has tried to identify these statements by using words such
as "expect," "anticipate," "believe," "could," "should,"
"estimate," "expect," "intend," "may," "plan," "predict," "project"
and "will" and similar terms and phrases, but such words, terms and
phrases are not the exclusive means of identifying such statements.
These forward-looking statements are made based on management's
expectations and beliefs concerning future events and are subject
to uncertainties and factors relating to operations and the
business environment, all of which are difficult to predict and
many of which are beyond management's control. Actual results,
performance and achievements could differ materially from those
expressed in, or implied by, these forward-looking statements due
to a variety of risks, uncertainties and other factors. The risks
relating to the acquisition include the risk that the tax and other
benefits that SP Plus anticipates as a result of the transaction
are not fully realized or take longer to realize than expected; the
risk that certain risks and liabilities associated with Bags have
not been discovered; and the effect of the acquisition on SP Plus'
and Bags' relationships with their respective clients, customers,
vendors and personnel. The risks relating to the businesses of SP
Plus and Bags generally include intense competition; changing
consumer preferences that may lead to a decline in demand for the
services provided by SP Plus and Bags; the ability to preserve
long-term client relationships; the loss, or renewal on less
favorable terms, of management contracts, leases or other contracts
with clients or customers; and deterioration of general economic
and business conditions or changes in demographic trends. For a
detailed discussion of factors that could affect the Company's
future operating results, please see the Company's filings with the
Securities and Exchange Commission, including the disclosures under
"Risk Factors" in those filings. Except as expressly required by
the federal securities laws, the Company undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events
or for any other reason.
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