Delta ground unit merging with Argenbright

Airline will still remain an equity partner in Delta Global Services.

Delta Air Lines has struck a deal for its ground handling subsidiary Delta Global Services to merge with Argenbright Holdings I LLC.

Delta Global Services has been a wholly owned subsidiary of Delta Air Lines. But when the deal closes it will be a standalone ground handling business under Argenbright’s management, with Delta as an equity partner in the combined company under the Delta Global Services name.

Atlanta-based Delta announced the deal Tuesday, declining to disclose the value of the transaction.

Delta will also remain one of the largest customers of Delta Global Services, which is a contractor for airline baggage handling, gate agents and ticket agents, security, pilot training, staffing and other services.

Argenbright “has the experience, focus and industry relationships to advance DGS’ growth potential and level of service,” Delta said in a press release.

The deal, expected to close by the end of this year, is not expected to have any “day-to-day impact” on Delta customers, and Delta Global Services will continue to operate at the same airports, according to the airline.

Argenbright Holdings was founded by chairman Frank Argenbright, who decades ago started an Atlanta-based security contracting business known as Argenbright Security with Delta among its major clients.

He sold Argenbright Security in December 2000, and later started Atlanta-based AirServ, which he also sold, and SecurAmerica.

Tom Marano, who has led other businesses for Argenbright, will become CEO of the new Delta Global Services.