World Freight’s up to $2 billion sale halted by Ukraine war

PAI Partners and Baring Private Equity Asia are halting a sale of World Freight Company due to market volatility caused by the war in Ukraine, according to people with knowledge of the matter.

The planned disposal of WFC was put on hold after the buyout firms narrowed the list of bidders at the start of this year, said the people, who asked not to be identified as the information is private. A sale could have valued the airline cargo management firm at $1.5 billion to $2 billion, the people said.

The private equity firms kicked off the divestment process last year, Bloomberg News reported in May. They could still resume the sale later if market conditions improve, the people said. Representatives for Baring and PAI declined to comment.

Formed in 2004, WFC invests in general sales and services agencies specializing in air cargo. These agencies act as third parties representing airlines to manage the sale of their air freight capacity, as well as supervise local operations and handle services such as tracking and invoicing.

WFC’s portfolio companies operate a network across 80 countries, managing over 3 million tons of capacity a year for its airline partners, according to its website.

PAI Partners and Baring Private Equity Asia jointly acquired WFC in 2018 for an undisclosed amount.