Investment firm KKR has agreed to acquire fixed-based operator (FBO) Atlantic Aviation from Macquarie Infrastructure Corp. (MIC) for $4.48 billion and assumed debt, the companies announced on June 7.
The transaction, which is expected to close in the fourth quarter, values Atlantic Aviation at 16.2 times the company’s 2019 earnings before interest, taxes and depreciation, the companies said.
It follows the $4.7 billion acquisition of UK-based FBO operator Signature Aviation by a consortium of Global Infrastructure Partners, Blackstone and Cascade, announced in February.
Atlantic Aviation, based in Plano, Texas, operates 69 FBO locations across the U.S.
“Atlantic Aviation has an outstanding reputation as a leading operator of critical aviation infrastructure across the U.S.,” said Dash Lane, KKR partner. “With our focus on providing long-term capital to support the growth of high quality and resilient businesses, we are excited to invest alongside Atlantic’s experienced team and strong existing platform which we believe is well-positioned to capitalize on multiple avenues of future growth.”
Investment advisory firms Lazard and Evercore worked with Macquarie on the transaction; Jeffries acted as the exclusive financial advisor to KKR.
Jeffries also participated in the negotiations involving Signature Aviation, which operates Signature Flight Support.
The financial services company said it expects the Atlantic Aviation transaction to lead to further consolidation of the FBO sector.
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