John Menzies, a logistics company based in Scotland, has bought Aeroground, a U.S. air cargo handler in a $28 million cash deal that will double its presence in the American air freight market.

Menzies Chief Executive Patrick McDonald said the acquisition, which will take the company into new airports, including New York, Los Angeles and Chicago, would help its U.S. operation which has lost money since it was acquired in 2000, to break even this year.

"There is a strong strategic fit with our existing ground handling and cargo handling business in North America with operations overlapping at four airports and new sites at a further five," McDonald said.

Menzies, of Edinburgh, said it will pay a further $2 million depending on Aeroground's performance over the next two years and it expects to close on the deal by the end of April.

Aeroground, which was established in 1988, employs over 1,200 workers at nine airports in the U.S. and Canada and made a $1.1 million pre-tax profit in 2004. It said it made a "significant" improvement in 2005.

Bruce Barnard